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It’s a Bird, It’s a Plane, no it’s…

| July 03, 2023

At the beginning of June, we said our model went risk on as International and US stocks were #1 and #2. July represents the same thing, and if anything, those two asset classes have gotten stronger relative to the other asset classes. Let’s take a quick look.

Meanwhile, the third and fourth asset classes have lost more to the first two.

We also said that if this was going to be a sustainable bull market, we would need to see it broaden out. Well, so far it has. Let’s take a look at the equal weight S&P 500.

The equal-weight index is up 7.65% for June, while the market cap index is up only 6.48%. Not bad for a month. We need to see this continue, and to confirm the next bull market we would like to see the equal-weight market break out to new highs set in February. We will see, but it’s a promising start.

Meanwhile, some things don’t change.

SpaceX is busy launching rockets into space and to date, here’s the totals.

Do we know what happened to the 39 that didn’t land? Just for the record, I have had 942 takeoffs and 942 landings. Maybe not all butter smooth, but a landing none the less.

The launches keep going and they’re not the only ones trying to launch stuff into space, there is a massive effort and a larger monetary investment to make this the next really big thing…Anyone up for a ride to Mars?

But still on Earth, Elon Musk continues to hit the ball out of the park with Tesla and deliveries. Did you see this?

Musk runs SpaceX, The Boring Company, Tesla, Neuralink, and let’s not forget Twitter. How does he do that? I think I have the answer!

Come to think of it, I’ve never seen Elon and Superman in the same place at the same time. Is it possible? Send help if I don’t come back from the Dark Web by next week.

Hey Chris, do I own any Tesla? Sure!

  • It’s the 6th largest holding in the Vanguard Growth index
  • It’s the largest holding in the ARK Innovation ETF
  • It’s the 2nd largest holding in the SPDR select Consumer Discretionary ETF

If you believe Cathie Wood (PM of ARKK), she believes Tesla will be at $2,700 by 2027. I know, it sounds crazy. But she said it would be $4000 (pre 15 to 1 stock split). People called her crazy because the price was around $300 at the time (see the following headline).

Do I want to bet against her? Not me. Is she perfect? Nope, nobody is, but she and her team do a pretty good job finding future trends and associated companies that are positioned to benefit from that future. Of course, her space is very volatile, but that’s like hot sauce on your taco. Gotta have some for flavor, but not too much to ruin the taco. I know, you didn’t see that analogy coming, did you?

Finally, Happy Birthday United States. 247 years. Through lots of wars, recessions, booms, and largely a better planet today than it was back then. I hope you have a great Independence Day. Please let us know if you have any questions…and please still have all your fingers on July 5th!