That tech uptick continued overnight. VG1 long exposure has benefited somewhat but I wonder/worry about those shorts. Just about everything went up! If you have got inflation where is the sensible place to put the money? A declining bond as interest movements eat away your capital, cash eaten by inflation - I think not. There is no alternative but to buy commodities, particularly energy and grains due to Russian stoush, and anything we have become hooked on with pricing power. Amazon, CME and Mastercard are good standouts. I also like the idea of anything in the security tech area and financials that can increase margins as interest rates rise.
Beware the short when others are calling for it! Long term, shorting in this market is risky unless you find companies that will go broke from the inflation. Eg building firms with fixed-priced contracts are a good short since they have no pricing power and likely will go broke. This is currently in the news. Any company that relies on populations who have no increase in income (eg retirees, pensioners) is also another good short. eg private health insurance.
VG1 Price at posting:
$1.56 Sentiment: Hold Disclosure: Held
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