Good Morning,
Turkey Day in the Whelan house came and went and it was another amazing success. The pre-roasted turkey was a success and gave me a chance to work on the butter (with cranberries and blood orange zest. It came up beautifully. As per tradition, the men do all the work on Whelan Turkey day so it was the efforts of my friends and father working hard in the kitchen that made it work.
Quick note: The BIP Show just had Pete Wargent on regarding the rates outlook and the looming downturn for Australian property. If you have anything to do with property in this country (so....all of you) I'd suggest you give it a listen.
As per the obvious way these things go the discussion was on Omicron, another letter of the Greek alphabet we all just learned about. Seeing news of it on Friday morning and thinking that various parts of the market that were already trading on pretty lofty valuations were set to be hit.
Because I like tormenting myself I stayed up on Friday night and realised "hang on...in the US Thursday was a non-trading day (because Thanksgiving) and tonight is a half day. The market has checked out and can be pushed down with a feather. This is grade-A malarkey at play"
I tweeted this late on Friday night...
But there was nothing else going on and every channel was speculating on how bad the new strain was. Everyone was calling it the 'Nu' strain because that should have been the next letter along the line. Like naming hurricanes.
However Omicron was picked...weird...wonder why?
I believe the science says that the more something like this mutates the less deadly it gets. Or the more infectious it is the less deadly it is. One of those. I'm sure it is.
What I am sure of is that with every manager behind the benchmark this year some quick thinking meant a "get out early and buy back late on a slow news day" was a great way to make a few per cent a month out from year end.
Bravo to all who committed. Myself...I was just sitting on the couch thinking about how much CNBC were blowing up on "the vaccine doesn't work on the variant" this and "make sure you have a will in place" that and "could this be the end of civilisation" the other....
Anyhoo...
So let's find a new thing to buy. As you know I love my Metaverse. In the future you'll own nothing, meet no one, use computer money, read tailored ads by Facebook (Meta) and absolutely love it.
Somehow I'll still owe the CBA a small fortune in real money.
While the market figures out if a highly infectious but symptom free mutation of a virus is worth collapsing the global economy for again (spoiler: it's not) I'm looking at some cheeky buys in spaces I love.
I love buying a gold mine with a strong future however I love buying the company that supplies the equipment to that mine and a bunch of other gold mines.
So I'm looking at digital infrastructure.
It's hardly a new idea that the metaverse will be huge but we'll need actual infrastructure to house said metaverse.
This is the ETF I'm looking at. As per ETF tradition it has an incredibly witty ticker: BYTE.
It's new as well. Really new. Barely a month old.
Produced by the same people as the META ETF it provides a more diverse holdings with a range of themes not directly related to just the Metaverse.
Also re the META ETF it’s a lot like the Nasdaq top 100 right now until we see more players rising up the ranks with new innovations.
This way you can gain from the benefits of the metaverse growth and also the standard things you like such as mobile infrastructure and cloud computing data centres. People are just starting to switch on to the fact we are facing a digital infrastructure shortage with the amount of volume moving online.
Semis Check In
The trailing stop on semiconductors was hit mid last week. It was great to squeeze out a few extra per cent using the trailing method, we avoided Friday's calamity and shows just how powerful the Interactive Brokers platform is for investors needing management here and abroad.
A fair few of the names in META are shared on the Semiconductor ETF so the exposure we need is still there.
Finally...
This!
All the best,
James
James Whelan | Investment Manager
Ground Floor, 5-9 Harbourview Crescent, Milsons Point NSW 2061
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