Those of you who may have seen my posts previously know that I was, from the get go, against BNPL. In particular when I found out that market cap of the Australian BNPL was within tens of billions of dollars whereas their real value combined together did not even reach 1 Billion. Look at what has happened now. Where is BNPL now?
I had a similar, albeit to a lesser degree, view about crypto. Although I traded Ethereum in its early days I stayed away from all of crypto over the past few years and look at the fluctuations.
I practice what I preach. On the weekend thread I implied the bear market is coming and I stand by it.
I have sold a whole bunch of stocks today and will continue selling from here on and frankly I dont think even Gold will be safe moving forward.
The reasons are firstly, IMO, US economy will start going backwards while the interest rates will go up. On top of that we have the pointless war in Europe over whose ***** is bigger.
The other reason is, as much as people want to deny it, the economy in Australia is in such a bubble that the slightest change will set panic and sell offs.
The Labour party has been elected perhaps at the worst time and although I dont believe this one will have an immediate impact, they will have no option but to raise taxes when they realize they cannot control inflation. Their only salvation remains bowing to China to soften the impact and who knows if that will happen or not.
It remains to be seen, but it is not very often that I am wrong.
What to buy you ask? Nothing for now but if you absolutely have to, good energy and particular oil stocks. Lends itself very well to inflation, just make sure the company you buy has good steady customers, is a producer not an explorer, and a very good balance sheet and you should be ok.
I have been a fan of TNT and have recommended it several times and I still stand by the fact that it is a super solid and in demand company and it is one of the very few I will keep some of it's stock moving forward but the reality is that an inflationary environment does not support tech stocks and thats the reason why it hasn't been going up.
