I recall one, the Direxion Daily Financial Bear 3X Shares – FAZ, they call it – rising from the wreckage. A fleeting star, indeed. It promised inverse returns, tripled for those who bet against the banks. A seductive whisper in a time of fear. They bandied its ticker about on the news, as if a symbol could conjure salvation. It debuted late, at the tail end of the storm, and for a brief moment, it soared. A mirage, perhaps, for those already burned.
Ackman calls it “deeply discounted.” Which, okay, I like that phrase. Sounds…responsible. It’s a relief. Because everyone else seems to be panicking about all the money Meta is throwing at Artificial Intelligence. And, admittedly, the metaverse thing – Realty Labs – feels a bit like a very expensive mistake. Like that pottery class I took. Good intentions. Terrible results. But Ackman seems to think the AI pivot is clever. And he has more money, so….
The Wall Street fellas are practically giddy, assigning a price to this company that suggests they expect it to solve all the world’s problems before breakfast. A price-to-earnings ratio that’d make a Mississippi gambler blush. But as my dear departed mama used to say, “Son, a high price don’t always mean a good bargain.”
The dispersal of these shares, 10,467,320 in number, leaves no trace in RWC’s current portfolio. A clean break, like a winter frost clearing the fields. Yet, the story doesn’t end there. The fund now anchors its holdings in Sociedad Química y Minera de Chile (SQM), valued at $100.64 million, followed by Vale at $85.00 million, and then Electrobras (EMBJ) at $79.76 million. GFI and Alibaba round out the top five, each a sturdy tree in a diverse forest. These are not merely numbers, but reflections of a carefully considered strategy, a weighting of potential against the ever-present uncertainties.
Wall Street, predictably, offers a consensus target price indicating a potential 42% gain over the next 12 to 19 months. One analyst, venturing beyond the herd, proposes a 79% increase. Whether such optimism is justified demands closer inspection, not blind acceptance.
And the proliferation of these ‘intelligent’ chatbots and ‘agents’—these digital mimics of human interaction—have created fresh vulnerabilities. Each new line of code, each attempt to automate convenience, introduces a potential avenue for exploitation. It is as if, in constructing ever more elaborate fortresses, we have unwittingly left open secret passages for the enemy. These risks were scarcely conceivable a few years past, and yet they are now the daily bread of those who dwell in the digital world. One cannot help but wonder if we are not building our own gilded cages.
Merck’s dividend yield currently sits at 2.8%. Now, some will scoff – a paltry sum, they’ll say. But compare it to the S&P 500‘s meek 1.1%, or the average pharmaceutical stock’s 1.7%, and a picture begins to emerge. It’s a difference of over 60%, a considerable margin in a world obsessed with fractional gains. It’s like discovering a hidden pocket in an old coat – a small thing, perhaps, but surprisingly useful.
The core question isn’t if you should dabble in small-caps – because, growth potential, people! – but how. Do you want broad diversification, or a slightly more focused approach? Think of it as choosing between a buffet and a curated tasting menu. Both can be delicious, but one requires a lot more willpower (and antacids).
I’ve been tracking stocks long enough to know that chasing the hot tip is for suckers. The real money isn’t made on the leaps, it’s made on the landings. And Medtronic? This one knows how to stick the landing. There are a lot of reasons to look at this stock, but if you asked me for just one, I’d point to its dividend. Forty-eight years of increases. That’s not luck. That’s a statement.
For a while there, 2023 to 2025, the bull market was being driven by Tech and Growth stocks. Predictable, really. When everyone’s feeling optimistic, they naturally flock to the things that promise to be even more shiny and profitable. It’s the way of things. Like moths to a particularly gaudy flame. But 2026… well, 2026 is being different. The S&P 500 is still perched near its all-time highs, but the Tech sector is currently performing with all the enthusiasm of a damp squib. Instead, we’re seeing Energy, Consumer Staples, Industrials, Materials, and Utilities leading the charge.