🎉 New Year New Profits💰 Stock Market Journal 12.31.23

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💡Interesting Posts of the week:

Golden Rules

Economic Insights & Market Analysis

A year for investing?

Many big tech stocks like the magnificent seven ($TSLa, $MSFT, $NVDA, $AMZN, etc.) have done exceptionally well and carried the market in 2023. On the contrary, many companies have stock charts like the one below.

There are tons of companies that have some value. Notice I am explicitly using the term some instead of ‘great value. For equity swings or speculative investments, you don’t need the company to have great value; you need a group of individuals to care about a sector enough to generate a wave.

China Stocks:

$BABA $NIO $BIDU $BILI are companies that have gone through hell in 2024. Will it rebound quickly? Who knows, maybe not. My point in mentioning China is that some of these companies offer great value in China and great value to American business partnerships. If we see a healing period between China and the U.S., Chinese stocks could start a bullish wave over the next few years.

Mid-Cap Stocks:

Analysts at Morning Star put stock market performance trends into perspective—and look ahead with a fresh market outlook for 2024. By capitalization, small-cap stocks remain the most attractive at a 16% discount, followed by mid-caps at a 6% discount, while large caps are a little above fair value.

These charts support our investing mental process of finding valuable companies at discounts. If we can align these discounts with the proper market cycles, it can be another profitable 2024.

Will interest rates play a role?

Many analyst, and retail investors assume there will not be any more rate hikes. This brings me to the potential issue with the current bullish sentiment the market has used to trade above new market highs.

The economy was so bullish, that we may not need an actual rate hike to bring down the market. A pause can be very detrimental especially more than one.

I do not see clear skies, though this is why you calculate risk and percentage. Some people expect a 2024 crash. In my opinion as long as our pivot levels are holding any heavy pullbacks will be healthy. One insight that many traders ignore is that news trumps everything.

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Investors Lab

Warner Bros. Discovery ($WBD) + Paramount Global ($PARA)

Mergers and acquisitions in the entertainment industry are not uncommon. Companies often consider mergers to achieve various strategic goals, such as expanding their content library, increasing market share, cutting costs through synergies, and gaining a competitive edge.

If Warner Bros and Paramount were to merge, it could be for reasons such as:

  1. Content Library: Combining their libraries of movies, TV shows, and intellectual properties could create a more extensive and diverse content catalog.

  2. Market Share: Mergers can lead to increased market share, allowing the combined entity to compete more effectively in the ever-evolving entertainment landscape.

  3. Streaming Services: The rise of streaming services like Netflix has changed the industry dynamics. Merging could potentially enhance the ability of Warner Bros and Paramount to compete with streaming giants by offering a more compelling and extensive content library.

  4. Cost Synergies: Merging allows companies to eliminate redundancies and achieve cost savings, making the combined entity more efficient.

Netflix was actually looking to buy paramount before the pandemic.

Investors see a biotech comeback in 2024 as rates fall

Our favorite biotech companies mentioned in our daily newsletter is $MRNA and $NVO. Get Access to future locked content here.

Two biotech companies to watch in 2024.

1. Verona Pharma (vrna)

Verona engages in developing therapies for treating chronic respiratory diseases.

  • Pending FDA approval.

  • A final decision on the NDA is expected by Jun 26, 2024.

  • Full Details & Reports HERE

  • Verona’s shares have lost 37.4% in 2023.

2. Sarepta Therapeutics (srpt)

Verona engages in developing therapies for treating chronic respiratory diseases.

  • Obtained accelerated approval from the FDA for Elevidys — the first-ever gene therapy in Duchenne muscular dystrophy (DMD) indication.

  • The study failed to achieve its primary endpoint. Sarepta’s stock is down 30% year to date due to this negative update.

  • More Details HERE

DISCORD / TELEGRAM TRADE RECAP

Investing List

Stocks mentioned in our Daily Newsletter or Discord
Percentage gained from our average price per share.

$CVS +16.29%
$MRNA +44.68%
$BABA +2.41%
$TSLA +64.98%
$AMZN +32.63%
$CHWY +14.29%
$SQ +38.90%
$EVRI +0.12%
$PLTR +8.89%
$NIO -3.30%
$PLUG +9.21%

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