What a shakeout the month of February brought to the table, right?
In case you didn’t already know, a shakeout is when tons of traders exit their positions, normally at a loss. And It’s usually caused by stock market volatility or bad news. And we saw quite a bit of selling to close February.
But March is finally here… and things haven’t exactly been better so far.
So now many investors and traders are wondering if this is a just pullback, or if there’s more potential upside.
With money from President Joe Biden’s $1.9 trillion economic relief package potentially hitting the market soon, the level of liquidity we’re seeing is unprecedented. And if you look at the fastest-gaining fund managers, their portfolios remain focused on these top tech held by hedge funds.
Which is exactly what I want to bring to the table today…
The market is trading at a fairly high earnings multiple, and the bond market has been selling off.
The earnings multiple is a metric that divides a company’s current stock price by its earnings per share. That determines how many years of earnings it would take to reach the stock’s current price. It’s used to determine how expensive the price of a stock is compared to a company’s earnings per share.
That’s especially true when you compare that to the historic correlation between bonds and U.S. stocks, and what type of yield is already priced into the market.
Based on my analysis, the U.S. market is pricing in interest rates that are roughly 3% to 4% as far as long-term evaluations are concerned.
That’s even more true when you compare that to the historic correlation between bonds and U.S. stocks, and what type of yield is already priced into current markets.
So I believe the current dip is just a much-needed pullback to cool off overbought price levels and to bring stocks back to manageable evaluations.
And these top tech stocks hedge funds are holding have great potential upside in light of the pullback we’ve seen in recent weeks.
They even have strong institutional sponsorship and stand to trade even higher if the market begins moving back near all-time highs. In fact, the first top tech stock hedge funds are holding is one of my favorite 13F filing buys, which means the fastest-gaining hedge funds are buying and holding this stock right now.
Check out my short video to reveal the three top tech stocks hedge funds are holding now, and feel free to share your thoughts in the comments section below.
And as always, don’t forget to subscribe to my YouTube channel if you haven’t already so you can be notified as soon as I post my next video!
P.S. In case you haven’t noticed, small-cap stocks are where it’s at…
That’s because of how volatile the stock market is right now… It’s become clear that big-name stocks aren’t protected against massive falls.
And that smaller stocks can prove to be more profitable in a fraction of the time.
In fact, I signaled 118% on PFSI…153% on DDD… and 414% on CNE in just a matter of one week!
These windfalls are what I like to call “microbursts,” and I’m finally revealing the details behind my brand-new strategy to the public.