The trade of the decade might very well be upon us, as we look into an absolute bomb that kathy wood just dropped on her twitter this morning. Now, if you guys don’t know kathy wood, she is a legendary mainstream stock investor who also dabbles in cryptocurrency she’s. Just a tech, futurist investor and one of the most visionary in the entire mainstream and crypto markets you’re definitely going to want to understand what she’s saying here as it lines up with one of the most incredible opportunities in crypto and beyond. As far as an investing landscape is considered, so go ahead. Smash that, like button, if you’re, excited to learn about what could be the trade of the decade.
As always, i’m not only covering these macro movements but helping you with individual coin picks and other types of actionable data. If you guys want to follow my most up to the date, information make sure to follow me on twitter at leotrades, and with that said, let’s dive in so kathy says. Today we learned that in november retail inventories rose more than two percent. Essentially, this means the amount of inventory that retail stores have on the shelves the fastest pay since the 90s. Obviously we know this was in concert with supply chain issues, so a lot of stores were stocking up, buying extra inventory so that they could fulfill demand.
Just in case the supply chain had hiccups. Now, meanwhile, imports jumped 4.7 percent, meaning we were buying buying buying even from other countries, and exports dropped 2, meaning that less people were buying from us unfortunate. Moreover, the real consumption, including services, was flat and the savings rate dropped to 6.9 percent below pre-coveted levels, as measured by the university of michigan, which i believe is the best monthly survey on the consumer sentiment during november and december dropped to a level last seen at The worst of the crisis in 2020.
In this context, the percentage changes listed above makes sense. Now, just to summarize, what’s happened so far, essentially we’re buying more stuff stocking up on inventories. Actual economic activity is slowing down, and there is a big disparity here that actually signals a pretty bad problem and sentiment is plummeting. Now she adds on to this fire by saying that these changes are not annualized, so multiply them by 12 to understand the drama unfolding here in the u.s.
Both businesses and consumers seem to have overreacted to the supply chain bottlenecks by building inventories of goods, while the government stimulus was flowing freely. These developments are not new. During the third quarter, real gdp was up more than two percent at an annual rate, but real final sales consumption investment. Excluding inventories, government spending net exports were flat effectively all the gdp growth that we had was from inventories that effectively we might have overreacted building up and we might not actually need so. Here’S where this becomes a really big piece of information and this knowledge bomb.
I believe could help you strategize for 2022. It falls squarely in line with what i believe is going to happen, which i’ll explain here at the end of the episode so make sure you watch to the end, because this is when i break this all down and make it actionable now. Kathy says here that this buildup, along with mergers and acquisitions and ipos, reminds her of y2k this time, however, the excesses are likely to be in industries that technology will disrupt. Now, if you remember, y2k was all in technology industries that were essentially way overvalued. We had the dot-com bubble and that came crashing down, but what she’s saying now is that the actual excesses are in the disruptees, not the disruptors, she’s saying energy, financial services and transportation among others.
If so, the disruption will be the flip side of y2k completing the circle, meaning that, instead of what happened in y2k, repeating maybe this time on a nasdaq wide level or on a crypto, wide level. She’S saying that the wash is coming to non-innovative non-tech companies, specifically in energy, financial services and transportation, among others. Moreover – and one of the biggest points she makes here is that fears of inflation will give way to confusion and fears of recession during the next three to six months, if so, the rapid growth rates of truly innovative companies, many of their equities malign this year, should Be rewarded handsomely. What she’s saying here is that what we’re worried about right now, what the fed is worried about right now is over inflation, the economy getting too hot too fast of growth, essentially the rich getting ultra ultra giga rich. Yet the economy not keeping up and creating wild inflation, now kathy wood’s view of the world is that this climate is going to switch dramatically over the next few months and that the fears will actually be for recession not for an over inflated, overly heated economy, meaning That the talk from the fed from jerome powell is not going to be hawkish and stern, raising interest rates and trying to tighten economic policy.
No, in fact, it’s most likely to flip the script and have them become more dovish, more friendly and more stimulus oriented, and we all know how that ends as we’ve seen from 2020, where the flu, which we all thought, would shut down the economy and bring prices Crashing to zero actually brought stimulus and prices going to the moon. It’S all about thinking, one or two steps ahead. One or two moves ahead on the chessboard and in this particular instance we’re seeing tough talk from the fed. But, let’s fast forward to the next chapter and see how this ends – and i personally of the belief that that tough talk is very short-lived and that the fed will do whatever it needs to buoy the markets. They won’t, however, send the markets into hyper overdrive, get rich, quick lottery ticket style investing.
That is not what the fed wants. They do not want you 2000 x, on your apple stock, but they do want sustainable, long-term growth of assets. So, insofar as that is not happening, they will most likely start booming the economy. Again, i do believe this is the biggest trade of the year is understanding that there will be massive fear induced across the markets and that fear will eventually manifest itself as a slowdown of the economy and then massive government intervention to then speed the economy back up And what we’ll see is that that money will get dumped into once again the most innovative and most prosperous tech disruptors, and that includes the majors over there on the nasdaq and, of course, our beloved cryptocurrency. Make no mistake when this happens.
Crypto will go absolutely insane and parabolic, and that is possibly the trade of the decade like we saw back in 2020 in march. That was one of the biggest opportunities for anyone to create. Intergalactic wealth was bidding that collapse or any time really in 2020, and i believe the writing is on the wall for it to happen again here in 2022.
Again as we’re seeing right now, nfts are getting super hot, just as the altcoins have stopped printing easy gains, as we’ve predicted time and time again throughout q4. Here on this channel as soon as altcoins stop printing money, nfts are gon na, go crazy and that’s exactly what we’re seeing so we’re gon na start kicking our nft content up tenfold so that you understand how to play this particular market and also understand why i’m Passionate and why i see the value in the projects that i see again, i’m just one guy and if you’re, using this channel alone, as your only information for how to navigate crypto, then you really are not gon na make it.
You need to be using a ton of resources, combining information and checking validity of any and all sources again, i’m here to share my information and share my knowledge, but i should not be your one-stop shop. You need to do your own research. I hope this episode has helped you out and if it did smash that like button, i believe that 2022 could present some of the biggest opportunities in history and, if played properly, if understood properly, you can get many steps ahead and crush it. That’S it i’m elio trades. You can find me on twitter at elio, trades and i’ll see you very soon on the next episode.