Welcome to the free State of the Market report for the Art of the Bubble! Our subscriber plans make use of the same base algorithm that our crypto hedge fund, 1.2 Capital, does. It’s modified in timeframe and weighting so you don’t have to stare at your screen all day long. In 2022, for cryptos, the Dynamic Algorithm outperformed its benchmark by better than 70%. In 2022, for stocks, the Bubble Portfolio outperformed its benchmark by better than 40%. For those of you who are accredited investors, 1.2 Capital has re-opened new investor onboarding. If you are interested in learning more please reach out to us here.
***New Format to the Newsletter****
We've replaced the stock and crypto analysis with our own AI sentiment rankings since that has been performing so well.
The Macro Situation
With over half a million jobs added in June and inflationary pressure losing steam across retail and wholesale sectors, are we in a “win-win” situation?
Not quite.
It’s more of the Economic Liminal Zone – we’re in transition, with positive signs underlined (or undermined?) by Fed caution. Here are the numbers boosting trading this past week:
- The Consumer Prices Index was at 3%, down sharply from 4% as reported in May;
- The Producer Prices Index rose only 0.1% in June; and
- The Wholesale Prices Index, which measures the change in producer prices, also rose 0.1%.
Despite these signs, the Fed will not be convinced the economy is making enough progress towards reducing inflation in view of the 2% mark.
Any increase in rates will put pressure on the banking industry, which is mixed at best. While JP Morgan is dominant, other banks have been reporting problems with stubborn investment barriers and depletion of net interest income.
Crude oil is down, and precious metals remain steady.
So, it’s not win-win yet. Anything can still happen when the economy is in transition.
- Todd Mei, PhD and Sebastian Purcell, PhD
AI Sentiment
The following sentiment scores use ChatGPT as part of the AI tech stack to rate stocks or sectors. They are best for the immediate day after a rating, but can give a sense for the following week's sentiment.
In what follows (1) is the lowest and (5) is the highest rating. A (3) rating is neutral.
-The Research Team:
Dom Viera, Samantha Russell, Nicole Zinuhova, Aiza Malik
Think About Subscribing
Our subscriber plans make use of the same base algorithm that our hedge fund, 1.2 Capital Management does, but modified in timeframe so you don’t have to stare at your screen all day.
We have two primary data offerings in cryptocurrencies: (1) AOTB Dynamic and (2) the Crypto Maxi. Here are our returns with comparisons to others (data from Messari.io).
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This newsletter was created by The Art of the Bubble/1.2 Labs and is provided for educational and entertainment purposes only. You should expect no financial returns one way or another based on the statements contained herein.Robin Technologies and Analytics LLC is the firm that distributes The Art of The Bubble products. The firm does not provide individually tailored investment advice and does not take a subscriber’s or anyone’s personal circumstances into consideration when discussing investments; nor is Robin Technologies and Analytics LLC registered as an investment adviser or broker-dealer in any jurisdiction.
