FTAIM - 5 Bursting Bubbles

2025-03-10 10:00:51 ET

Summary

• Sell half of your holdings in sectors like quantum computing, bitcoin mining, and engine leasing due to high prices and euphoric sentiment.
• Bitcoin miners and digital currencies like FTX Token are overvalued; consider selling half to mitigate risks.
• Deleverage by selling half of your SPDR® S&P 500 ETF Trust, or SPY, holdings and diversify across different markets and cap structures for better after-tax compounding.
• Despite potential bubbles, these trades could be early; earn returns in treasuries while awaiting better opportunities.

Disclaimer / Disclosure

Sell ½ (or Short)

For 2025, don’t buy SPY ; if you’re long, sell half and keep plenty of dry powder . Parts of today’s market combine a high price with euphoric sentiment. Here’s where I see the two combine —2024 year-end bragging over returns that have left securities at precarious heights that could lead to a rocky 2025. If you’re out, stay out. If you’re in, consider selling half. Hope you’re wrong. Feel free to blame me and post angry comments if this is a disaster. Here are specific actionable areas worthy of focus:

For further details see: