🗞 Emergency Meeting

WHILE YOU POUR THE JOE… ☕️
Just Start

In our New Year’s newsletter, we gave our users a bit of what our 2025 plans for personal growth were, and one of the main strategies had to do with just getting started. 🥳 

Getting started with building your personal brand, as well as an online presence. Whatever you’re good at, just start documenting it, hit record, and start providing value to people across the world.

Become “That guy” in your field, and eventually you will be recognized by some of your industry's biggest names. 👀 

After one of our commitment of traders report breakdown, Jason Shapiro, the king of this report decided to follow our account. And that meant the world to us.

Speaking of the industry’s biggest names, let’s get on with today’s email 📧 …

CULT OF EXCELLENCE
Are You Not Entertained?

The new Goldman Sachs 2025 outlook is out, which means most clients and portfolios are aligned with these views already. ✅ 

Once this view and report reach the mainstream media and the public, certain stocks and industries will start to move in response to the new attention, and by then, it will be too late.

Too late if you haven’t been following us, because we gave you exactly what Goldman Sachs is looking at a few weeks ago.

This is an excerpt from the Goldman Sachs report, specifically on bonds and their correlations to stocks.

They mention the concerns with lower growth shocks right off the bat, something we’ve been warning you about in previous posts based on the manufacturing PMI now contracting for 26 consecutive months. 📉 

The services PMI has also been softening lately, meaning that there is very little left—other than inflation—carrying the United States GDP onward.

Okay, now in English: There’s a major risk of a selloff in the S&P 500 💥 and the overall stock market in the United States, making bonds more attractive today.

Now, remember last week when we broke down the commitment of traders report? The same one that got Jason Shapiro to follow us back on Twitter.

We showed you how the commercial dealers (the big banks, prime brokers & issuers) are now as short the S&P 500 futures as they were since 2007.

Or 2018, for that matter. Look, the ones who control money are expecting a huge market selloff coming up, and now Goldman Sachs has made this public in its outlook report.

You’ll probably think I’m trying to sell you on our platform, but we truly are here to bring you the insider info as best we can from what we learnt at the banks.

So now, what does Goldman Like here? 👀 

Well, it’s not too clear in the messaging, and it’s not supposed to be. But, as someone who worked very closely with equity research and Goldman Sachs, I can tell you a few things that the bank might want to be recommending:

• Energy stocks, as they mention, there are LOTS of upside-tail risks based on supply shortages and demand resurgences.

• Industrials & Manufacturing: Of course, as the new trade tariffs become effective, the nationalization of most products will occur, bringing on a new wave of manufacturing expansion.

We just happen to have given you both a long view on oil and manufacturing stocks. Stay tuned on Wednesday to find out which industries in manufacturing we’re after specifically. ⏲️ 

TRADE OF THE WEEK
Lock ‘n Load

Remember our last post talking about how the national debt of $36 is now in direct conflict with our defense budget?

The $1.1 trillion in interest payments the United States is making on that debt is now larger than the defense budget, and whenever this happens, you can bet a big war is underway. 🤯 

Why?

1. It gives the government a reason to cut interest rates, so that they can support the “Hard times” and also lower the payments / devalue the debt.

2. It’s an excuse to raise the defense budget and therefore print even more money.

But that’s besides the point, I want to show you a few things about Lockheed Martin, which could be a nice stock to have if this debt dynamic does throw us into a war:

Jim Cramer is bearish on Lockheed Martin, and that should tell you everything you need to know.

But, we’re not getting paid to leave you hanging, in fact we’re not getting paid at all to do this 😢 

In all seriousness, Lockheed Martin stock now trades at 78% of its 52-week high, so it’s in official bearish territory. 🐻 

We think that, as the Ukraine war comes off its peak, that the war premium on some commodities like gold and oil have come down a bit.

With this in mind, the premium on defense stocks like Lockheed Martin has also increased. However, this doesn’t mean that the discount will remain like this forever, especially given the debt situation, which is pushing for a new conflict.

When it comes to the chart, there is one interesting feature here, and that is the $475 ish level that has acted as a major volume cutoff for the past nine months.

Chances are, we stop here and then find ourselves back to higher levels like the $567 VPOC of the past six months’ distribution for example.

It looks like we aren’t too far off in this belief either, as Wall Street analysts have kept a $605 a share price target on the stock; that’s a 25.5% upside from where it trades today, by the way. 🔥 

NOW GO AND MAKE IT HAPPEN
Masters of The Universe

If you’re new to the industry or even a seasoned veteran, it would be good to know who you’re competing against. Lucky for you, you’re not competing against me.

But you are competing against thousands of others at Goldman Sachs and other reputable firms out there, so it would be good to get to know how they work a little better; that’s where today’s book recommendation 📖 comes into play.

To your success,

G. 🥃