| Author | Message | ||
     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3969 Registered: 05-2011 Posted From: 24.164.46.35 Rating: N/A |
ScalpTrader Morning Notes Investor infatuation with growth stocks appears to have hit a wall for now. Of course, they will return when the stocks start going up again. My current plan is to continue researching stories and looking for great, long-term opportunities. In my world, the most compelling opportunities are found once investors/speculators have given up on asset class. I think SPACs are racing down the road of investor capitulation. I've followed the venture capital industry for a long time and have often wished there was an easy way to participate in funding rounds when private market company valuations are negatively impacted by multiple compression in the public markets. I think certain SPACs will eventually provide that opportunity. One benefit of rising interest rates and increased market uncertainty is more interesting deals in the high yield space. It has been well over a year since I put on a new Preferred or Baby Bond position. Low rates and rising stock prices allowed speculative companies to either: 1) issue stock, 2) issue convertible bonds, 3) issue Preferreds at absurdly low "coupons"... High yield is a great space for investing and trading. I'm looking forward to an increase in deal flow. |