This week on The MarketBeat Podcast Kate’s guest is Michael Wang, founder of Prometheus Alternative Investments. Michael has worked at both Citigroup and hedge funds and understands the market from different perspectives. In this interview, he discusses why he believes institutional investors are bearishly positioned right now, and how individuals should approach their portfolios as the summer rally appears to have softened.
Topics in today’s interview include:
-Why Michael says “Don’t confuse today’s market with today’s economy”
-Why the summer rally was driven by better-than-expected Q2 earnings and lower commodity prices, despite high inflation rates
-Why technology stocks, along with other growth names, are sensitive to interest rates, which affects their current stock prices
– Is the growth rally fading, now that the market is going through a selling period again?
-Was the summer uptrend just a bear market rally? It looks like this.
-Will the market stay above the mid-June lows?
-In which sectors does Michael see potential at the moment? Does he see continued interest in so-called FANG names?
-Why does Michael see strength in the semiconductor industry, despite poor earnings or guidance?
-How retailers like Target are bringing out bad news, while pandemic darlings like Peloton are bringing out good news, Peloton and others made the mistake of thinking a sales surge in the pandemic era would be permanent
-Investors know the economy is challenging, but that’s why they manage their expectations on earnings reports
-How 2009 and 2020 were good examples of why you shouldn’t confuse the market with the economy. Market price in economic recovery before they happen
-Why institutional investors follow the Fed closely and how it affects their investment style, even down to one word Fed Chairman Powell can add or omit
-What are the pro’s best practices for retail investors to follow?
-Why Michael says it’s important to do your own homework when choosing investments, and why you’re not sure exactly what the pros are doing despite what they say.
-Why it’s important to be careful chasing meme stocks
-What risk-reward calculation should investors use as part of their process?
-How can investors with busy lives and full-time jobs manage their investments, as research can be time-consuming?
-Why Michael thinks it’s important to learn from the pros
-Why retail investors have the advantage when it comes to time horizon and time arbitrage
-Easy tips to hold stocks and avoid buying at the top and selling at the bottom
How to reach Michael
Find Michael on www.prometheusalts.com
Michael’s special offer for MarketBeat listeners to access the Prometheus platform:
Enter code: BIRD to access
Stocks and ETFs featured in this episode:
ARK Innovation ETF (ARKK)
Zoom video communication: (ZM)
SPDR S&P 500 ETF Trust: (SPY)
Invesco QQQ Trust (QQQ)
iShares Russell 2000 ETF: (IWM)
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