Tech Stocks Crack

by Nick Hodge


A couple of down days, heaven forbid, in the market over the past week.

I was telling you last week that was nothing to worry about. The cycle hasn't fundamentally changed. The dollar and rate trajectories and trends haven't broken, and neither has the bull market —  albeit the bubble bull market — in stocks.
 
You've had tech stocks drawn down more than other equity classes. Names like Tesla falling much further than the broader market. Amazon as well.
 
You had Elon Musk tweeting “Excession” this weekend. And a bit of excession, I guess, being reflected not only in the Bitcoin price, but in Tesla share price as well, as that's off significantly.

What's not off significantly are the sectors I've been telling you about that were under owned and that were going to be top performers early in 2021. I'm talking about sectors like energy that are now up 30% in the past three months, if you look at the XLE.

I was telling my buddies a couple of weeks ago that I was buying Exxon, and that's done quite well as oil continues to inflate now at $63 — West Texas Intermediate the highest it's been since January of 2020. 
 
Another sector I've been telling you that was going to continue to inflate is cannabis, and I was telling premium readers last week that you should be buying this dip... using this dip to buy more cannabis names or to buy more of the cannabis names that you like.
We've done quite well in some multi-state operators as the U.S. looks to potentially legalize nationally... and as states like New Jersey open up... and as states like Pennsylvania open up more dispensaries.

If you look at the MSOS cannabis ETF, for example, up 65% in the past three months compared to a NASDAQ that's up "just" 12% in the past three months.

So certain sectors vastly outperforming the NASDAQ and the S&P.

And those are the ones I identify and get readers into in Foundational Profits.

Call it like you see it, 

Nick Hodge
Editor, Daily Profit Cycle

Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Hodge Family Office, Family Office Advantage, and Foundational Profits. He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.

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