Evolution rewards selection not diversification.
Taiwan Semiconductors, Uranium, CNY and Bitcoin.
Markets are a relative game. For many analysts, prices are in bubble levels… simply because price action has increased too fast. But what is too fast if the reference rate is falling at a 15% yearly clip? When you see the ratio between the Nasdaq and M2, technology is still cheap!
Avoid the falling ship
Companies with low debt ratios and margins higher than 15% are still a buy (MSFT, and many tech companies)
Scare assets (Bitcoin, Art, Gold, Silver) are also a buy.
Companies with strategic value such as Taiwan Semiconductors (TSM) and assets like Uranium are a buy as well.
The World of Bits needs electricity to function at the highest level and it is difficult to imagine sustainable energy in a world without nuclear in the energy mix. Cameco (CCJ) is a very strategic company.
The technological developments of the 20th century was in large part based around oil. In the 21st century, electric cars, robots, AI and smart cities will demand more chips. Today, the market cap of the semiconductors sector is around 2 Trillion USD, roughly the same as Saudi Aramco- the biggest oil company in the world.
If semiconductors will have the same geopolitical power as oil companies, the likes of TSM have room to increase 5-fold in the coming years.
Buy a currency with billon of users
China's transition from an export driven economy to a consumption driven economy is a matter of survival. A strong Yuan will not only be a representation of this transition but also a projection of Chinese Geopolitical power. The aftermath of COVID will leave a huge debt stress in emerging markets that could be the opportunity that the Chinese government needs to create their own 21st century version of the Marshall Plan, one where democratic institutions are not part of the deal.
If you care about your individual liberties and want to be part of a monetary network with the potential of having billons of users, I strongly advise you to do your own personal research about Bitcoin.
https://www.amazon.com/Bitcoin-Standard-Decentralized-Alternative-Central/dp/1119473861
Guillermo Valencia A
Macrowise Director
Florianopolis, Brazil
December 15, 2020.