Same drill with the “Everything is different now” Covid stocks, with this ETF being a composite. Of course, nothing is really different except dummies wearing masks alone outdoors.
It all looks weird but I guess that’s the point.
Q1 GDP and Q2 GDP negative. Equities sold off. Popular thought was we’re pretty fucked and fair enough.
Q3 was tracking -1.2% and right in the last week flipped positive by a large margin. Very strange. Markets have rallied since Q3 GDP came out.
Q4 GDP tracking around 3%. Earnings will be good.
Sentiment is crazy bearish yet GDP is telling us otherwise And the fact the market rallied from Q3 GDP announcement suggests an upswing instead. PE ratio on S&P is 19 vs 28.
If Q4 GDP holds positive this could cause a real can of worms as we are 40% below PE ratio a year ago which takes us to 5,600. it sounds crazy but if Q1 and Q2 GDP are positive perhaps that’s the trigger?
I still hold my existing crypto positions except for SOL. I figured best to keep something as a hedge just in case something crazy happens but I have NFI.