Lau here.
It looks like the market is finally having its hangover from Tuesday’s blue wave. As I write, the S&P 500 is down about 4%, the Nasdaq 6%, and chipmakers as a group about 10%, with some individual names doing even worse. Take a look. It’s a sea of red.
And it isn’t just stocks. Oil dropped 9% yesterday, Bitcoin is down 5% today and back under US$76,000, and the VIX, the market’s fear gauge, had one of its biggest one-day jumps in years.
Two of our positions also got caught in this volatility: a rare earth processor with its own mill in America, and a shale oil producer with some of the lowest costs in the business. For us, because of the way we buy, that’s not a problem. It’s a chance to bring our average cost down.
That’s because we never buy a position all at once. We build it in tranches, with standing orders waiting at lower prices for days exactly like this one. When the market sells everything, those orders fill. Two of ours did this week.
Below, I name both, walk through what happened to each, and tell you where we currently stand. If you’ve been on the fence about joining the paid side, I’d say this is the kind of week it’s for.