We’ve all heard of FOMO by now, ‘Fear of missing out’ well Im going to invent a new one ‘FOBTE’ which is short for ‘Fear of being too early.’
I find myself not having enough of ‘FOBTE’ because time and again I see the completely obvious and it takes a year or two or even a decade to actually do the thing I can see. This problem is not quite so bad in equities but it is still a thing.
Let me list a few outstanding:
Platinum and the other PGM.
They simply don’t make much of it and its going to go into all that whizz tech stuff that is on its way.
AI
This will boil the ocean because AI is electricity and with AI the winner takes it all and all energy along with it.
UK takeovers
UK companies are as cheap as chip, you can pay for them easily from their earnings.
When you are in a position when the outcome is obvious but stubbornly refuses to go your way, you are left with 2 choices. Stick with it prepared to walk the streets with a sandwich board stating your obvious truth, or give u on it and go where the market is starting to be in agreement with you.
The former mindset is where the Gold bugs inhabit. Gold will go to the moon once the conspiracy holding it down collapses. The world is going back on the gold standard….etc. This is worthy of a sandwich board and I am acquiring gold because once Putin falls, Russia will stop dumping gold and up it will go. However Gold is never going to be remonitized, its just to volatile and rare a commodity.
The second mindset, is to give up on that idea and if it starts to go the way you expected then take a look. This is where I place Platinum. It has to, its got to, it must… but sadly it isn’t, so I’m dropping that ‘dead donkey,’ for now.
AI boiling the ocean? No one is going to care, because the people in power are going to lust of it, so while you might be restricted from plastic straws or priced out of winter heat and forced to separate your plastic, paper and metal, our overlords will be boiling the oceans fighting for primacy burning gigawatts through tensor gpu silicon at a scale that will make Bitcoin miners look like tree huggers. As such its long the hardware and software guys and you can brave NVDA and AMD right now. For me I’ll let the Nasdaq correction get past before I stray into the zone of highly valued tech.
UK takeovers. Yes please.
This is about to kick off any minute. You name it, it’ll be under the microscope for a takeover. No one is too big. BP, BT, MNG, VOD, GSK….. its all up for grabs. The market is on a run and the on coming takeover wave must be helping it along.
The UK is up the creek on the financial services side, drowned in red tape, sloth and incompetence. The family silver is there to be had.
Make your list and stake it out. There will be nothing sacred.
Here at 10 of my favourites (I own them all)
Aviva
Babcock
BT
Capita
GSK
ITV
M&G
Mitie
Petrofac
Vodafone
Now we are in a post-covid world there is M&A catch up to do and as you may recall, the UK doesn’t buy foreign companies anymore, so its all going to be one way traffic.
As such I’m on the bus for that journey and once the US secondary bank crisis is out of the way it looks like the journey will begin