Here's What Sardines Can Teach You About Investing

Plus stocks to watch, a contrarian bond bet up 50% and upcoming rate cuts.

Rate cuts are coming, I know this is true
Yet September turned the market red
and now investors are blue

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The Mid-Week Market Update

For those of you who aren’t paid, you’re missing out on these weekly market updates:

The Summary Report — Everything below summed up in a sentance per piece.
Stocks To Watch — Let ‘em ride!
Current Contrarian Bet — James BONDS!
Market Heat Maps — Follow the green!
Fear & Greed Index — When should you buy?
Rate Tracking — Inflation, interest rates + more!
Upcoming Market News — What’s on the horizion?
Mid-Week Congressional Trading — Politicians money makers!

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Buy Eating Sardines, Not Trading Sardines

Last Wednesday I gave the group of free subscribers a “Wednesday Freemium” article. I took a quick look at insider selling and came to the following conclusion:

“What should I do with my money?” Well, according to insiders the safest option right now is to hold it and look for a more fortuitous (look at that absolute nerd word) time to invest.

That advice panned out as the market has dropped over 2% since that post.

Hopefully, by now you’re starting to question why the hell I am talking about sardines. Well, because I believe this negative trend is going to continue throughout the week and if you’re anything like me you want to know how to avoid it.

                                              The trick is to buy eating sardines.

Not too long ago sardines disappeared from their Monterey, California waters. With all the sardines gone, commodity traders began to bid up the price of a can. Accordingly, the price of a can skyrocketed… people were trading sardines like it as pure gold!

Eventually, a speculator decided to pop open a can and enjoy a snack. He immediately became struck with sickness. He returns to the seller and complains about how he bought this expensive can of sardines, ate them, and became violently sick. The seller then responds, “No, no, no… You don’t understand. These aren’t eating sardines! These are trading sardines.”

The current stock market has nearly 6,000 overpriced cans of sardines (stocks). Most investors don’t care about what is going on underneath the lid of the sardines, they just want to buy a can and see if they can sell it for more tomorrow. Here at The Simple Side, we buy eating sardines.

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The Single Sentance Summaries

Current contrarian bet — looking to realize gains… soon?

We currently have 5 stocks on our “Stocks To Watch” list including Apple and ZROZ.

Heatmap shows the market has been shifting away from big tech and towards underappreciated sectors — as predicted last week.

The stock market is neutral on the fear gauge and crypto is in a fearful state — possible buying opportunities for crypto…

Prediction markets believe we will receive a 25bps rate cut in September, but the 50bps rate likelihood is on the rise…

The CPI report before the Fed meeting could be the shift to 50bps from 25bps, but how…

Congressional trades show Intel (down 58%) as a buy, but who bought it…

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Current Contrarian Bet

Our current contrarian bet is on Bonds… James Bonds. Okay, stupid jokes aside our bond plays recovered wonderfully on Tuesday on the market open. Over the past week, we captured a 3% gain in ZROZ and TMF. This puts us in line with bond prices from early August. I plan on holding the bonds through September. I will likely relinquish my position in TMF if the stock reaches $62 a share. The returns from the October 2023 trade will be over 55% at his price and well worth the hold period of 11 months.

I would like to keep ZROZ in my portfolio for the foreseeable future, but in all honesty, I am more worried about the government’s pocketbook than anything.

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Stocks To Watch