To investors,
Investing is an endless pursuit of learning. No matter how much you think you know, there is always something new around the corner. The world is dynamic. The future is unknown. If you pay attention and put in the work, you can find small insights about how the world works.
Many of these insights may surprise you.
Over the last few days, I have stumbled across a few of these surprising data points. I’ve compiled them in today’s letter, so we can all attempt to learn together.
First, Japan’s Nikkei 225 Index just hit a new all-time high after a 35 year bear market. I am often reminded of the phrase, “bubbles can get bigger than you think, crashes can go deeper than you think.” We may need to add a third part, which would be “bear markets can last longer than you think.”
Next, Moscow’s stock market is up 47% since the invasion of Ukraine. This appreciation comes despite the immense level of financial sanctions against Russia, along with a general vibe shift to “don’t trade with the enemy.”
On top of the stock market, Russian oil imports by foreign countries are at the same level now as they were before the Ukraine invasion. China, India, and Turkey have gladly taken extra Russian oil, while the rest of the world tries to grab the moral high ground.
Domestically, the magnificent 7 stocks (Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla) have been on an epic run. Surprisingly, the market does not appear to believe the companies are overvalued at the moment. Short interest on these 7 stocks has continued to remain suppressed, which likely is helping to drive the prices higher as well.
The magnificent 7 are not the best performing stocks over the last 30 years though. That title belongs to Monster Beverage, which is up a whopping 68,825% all time. Everyone knows energy is valuable, but it was energy drinks instead of oil or natural gas that was the best investment.
Lastly, something previously thought impossible happened yesterday. Varda, the space manufacturing company that wants to manufacture drugs in zero-gravity, successfully returned the first commercial space drugs ever manufactured in space (this photo is of the recovered drugs after the touched down in the desert).
The company has created a space manufacturing facility, launched it into orbit, manufactured the drugs, and safely returned them to the United States yesterday. It took them less than 1,200 days to accomplish all of this. I am a tiny investor and couldn’t be more excited about what will be possible if we can commercialize space for the benefit of humans on Earth.
Remember, investing is a journey of learning. Sometimes we are surprised by data and other times we get to peek into the future. I can’t believe we are all fortunate enough to live in the second best time in human history. What would be the first? Tomorrow.
Hope you all have a great day.
-Anthony Pompliano
🚨 Reader Note: Today we are hosting a webinar to explain the current state of the US housing market. The webinar will be led by ResiClub’s Lance Lambert and is full of unique data and insights.
The webinar is free to attend. You will definitely learn something about interest rates and the largest asset class in the world. If you would like to attend, please RSVP here and we will send you a calendar invite with Zoom information.
Michael Zuber is a W-2 employee who retired at the age of 45 through real estate, and created a brand called "One Rental at a Time."
In this conversation, we talk about the single family rental market, how Micheal built a life of financial security, thousands of hours of content on the internet teaching others, current market conditions, and more.
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Anthony Pompliano Shares His Latest Thoughts On Markets And Geopolitics In This Episode of New Founding
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