Who needs sleep anyway? In an ill-advised and dangerous decision, made with outright disregard for the health and wellbeing of capital markets professionals, the regulators approved 23-hour per day stock trading No one wants this

What is Consensus? How to Position? Let’s take a look at this Deutsche Bank survey. 1) 72% of investors expect the S&P to drop 10% before rising 10% 2) More than 50% of investors expect Nvidia to drop 50% >> Both are wrong. Markets are displaying elevated fear across a number of metrics A significant number of securities are oversold (see chart). Sentiment is bearish. And we detected the first ‘vibe change’ last week… What I did: >> Bought Broadcom and ASML while QQQ was red Don’t chase green; fading Monday morning weakness means you are on the other side of panicked investors >> Removed tactical underweight Recall we went risk off on August 1st. That tactical maneuver helped us blunt the impact of 15% drawdown in tech stocks like Apple :) We are back to a normal allocation to equities. Outlook: Consensus S&P Earnings Growth expectations are 0%. That’s a low bar to cross for an economy that continues to beat expectations >> Removed ‘higher for longer’ header. The 30-year hit 5%. Rates are topping out. Inflation view, however, remains is ‘stickier for longer. Variant Perception: >> The economy is stronger than anyone expects. Just look at Economic Surprise index >> The terming out of Consumer & Corporate debt has blunted the impact of the Fed >> Private credit markets are lending in lieu of banks (albeit at high rates) >> The next few days could be volatile; we want to be long Earnings Season which starts Friday This weekend’s @LumidaWealth newsletter gets into more of the rationale for more @RemindMe_OfThis in 3 months

The relative performance of the healthcare sector versus the S&P 500 has been in a 30-year upward channel. At market peaks, these stocks often reach attractive valuations and then excel in performance during economic crises. While the spotlight has been on historically expensive mega-cap technology companies fueled by AI developments, the healthcare sector is poised to be among the primary beneficiaries of such technological advancements. The case for the Biotechnology industry is arguably even more compelling. Since 2015, these companies have drastically underperformed the S&P 500 and Nasdaq indices. The Nasdaq Biotechnology index, which includes larger and established businesses, currently has a price-to-sales multiple of approximately 5.5 times, down from nearly 13 times back then.