My Top Five "Red Wave" Buys
I hope you made as much money last week as me...
What a week for the TikStocks Portfolio.
The "red wave" we saw last week galvanized the investing community. While both financial and betting markets had priced-in a Trump victory, they had not priced-in a red wave. This is why we've seen such a furious rally since Election Day.
When you add in that Jerome Powell cut interest rates again on Thursday, you have a recipe for a sustainable bull market in both stocks and crypto.
Luckily for us, we were positioned extremely well for this outcome. Large portfolio positions like Bitcoin (BTC), Ethereum (ETH) and Fair Isaac Corp. (FICO) are all up double digits. That's in addition to smaller speculative positions like Solana (SOL) and ChainLink (LINK), both of which are up over +30% since election night.
As I explained in Monday's newsletter, I am not looking to chase anything higher.
But we do need to get our buy list together and lock-in some gains.
The Roaring 20s Have Arrived
A short-term pullback would not surprise me here.
Stocks and key crypto projects are all near overbought territory. Like a rubber band being stretched too far, we usually see a snap back at some point.
But any and all dips should continue to be bought. For one, I'm of the opinion the combination of a global liquidity boom, AI-powered earnings and productivity growth, and the coming wave of deregulation under Trump 2.0 will lead to a new Roaring 20s in the US economy.
I've been consistent in my view - as far back as February 2023 - that we're in a secular bull market that will last many more years. And I have been proven correct thus far. However, I view those three factors as a recipe for an S&P 500 has high as 10,000 at the end of the decade...
...or a +66% increase over the next five years. Increased fiscal stimulus, rising deficit spending, and corporate tax cuts will also add fuel to the secular bull market's fire.
Nobody knows for sure which assets will outperform. But I have a few ideas.
My Upcoming Portfolio Changes
The market is telling us which assets and sectors will likely outperform during the next four years.
At the top of my list is crypto. While Trump can be unpredictable, he made the following proclamations on the campaign trail:
He will setup a Strategic Bitcoin Reserve, officially adding Bitcoin to the US Treasury balance sheet
He will fire SEC chairman Gary Gensler - who's staunchly anti-crypto - on day 1 and replace him with someone more crypto friendly (likely Dan Gallagher of Robinhood Markets)
He will overhaul how crypto capital gains are taxed
He will reduce regulation in the space
This is clearly good news for our current crypto holdings: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and ChainLink (LINK). However, considering Elon Musk will be integral to the Trump Administration 2.0, I will be looking to add…