Mechelany Advisors’ Investment Ideas are here to make our readers make profitable investments over different time-horizons. Our value oriented investment management style and research focuses on cheap companies with great and solid businesses to be held as core holdings in portfolios. We provide individual Investment ideas based on our multi-layered screening and valuation process combining structural, top-down macro, sectoral analysis, bottom-up stock selection and valuation analysis. Our Investment Ideas may be included in our Model Portfolio while some may not be included if they do not fit the global risk profile and asset allocation chosen at the time of selection.
On February 23rd 2021, Mechelany Advisors launched its US TECH SHORT PORTFOLIO, a Portfolio designed to capture the coming bear market in US Megacap technology stocks.
Our Mechelany Advisors’ US SHORT TECH PORTFOLIO is already up + 5.37 % since February 23rd.
We have been developing the thesis of the END OF TECH since 2018 based on our in-depth analysis of the sector and the phenomenal rise of the share prices of these superb companies where equity valuations had reached unsustainable levels.
One of the core element of our warning thesis, besides extremes in valuation, was the coming regulatory backlash on businesses that have become threats to Nations and Governments considering their reach and power on citizens.
In 2020, the valuation bubble reached an extreme with these stocks rising by more than 100 % since March 2020, and in the case of Tesla 800 % in less than a year, making their valuations even less sustainable,
Our concerns about their dangerous impact on societies was fully vindicated by the insurrection that took place on Jan 6th 2021 in the US Capitol, an insurrection led and fed by a disgruntled President touting fake news on Social medias and inciting the People to overturn a peaceful and fully democratic election.
In February 2021, we have highlighted the loss of momentum of these stocks since September 2020 and warned about the major TECH BREAKDOWN that took place on Feb 23rd 2021.
Since then, these stocks have been falling significantly as investors are pulling out of the leaders of the entire US Secular bull market in favor of more cyclical stocks and financials.
We are now sitting on the verge of a major bear market that will see these stocks lose between 50 and 80 % of their value in the coming two years.
As our investors know, we expect the global markets to experience a significant correction in Q2 2021 and these stocks to have seen their secular peak. Considering the recent breakdown in key stocks like AAPL and AMZN, it is unlikely that these stocks will hit new highs into April.
Exane Leverage Tracker Short on US Technology Basket. ISIN CH0590403132
This Investment Certificate replicates the Mechelany Advisors US TECH SHORT PORTFOLIO and consists of a 2x leverage short of a basket of 8 US tech mega caps.
It is destined to provide investors with two benefits :
1. A clear Alpha generator in case of a bear market
2. A very convenient way to HEDGE a global equity portfolio by shorting a diversified basket of the most expensive component of the world equity markets
With one single security that is traded daily at the NAV of the basket.
Download the Term Sheet
Advanced Micro Devices
DISCLAIMER Mechelany Advisors FZ-LLC or www.mechelanyadvisors.com, is not a registered investment advisor, nor a capital management firm or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Mechelany Advisors FZ-LLC operates as a private advisory and research company where we provide consulting services to pension funds, investments funds and private clients. Our analyses and conclusions are ours and they only clarify and highlight the investment rationale behind our own investment decisions. The analysts and employees or affiliates of Company may - and usually do - hold positions in the stocks or industries discussed here. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. You understand and acknowledge that there is a very high degree of risk involved in trading securities. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns. The indicators, strategies, columns, articles and all other features of Company’s products are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company’s website are for educational purposes only. Such examples are not solicitations of any order to buy or sell securities, commodities, investment products or engage into any kind of trading activities. Accordingly, you should not rely solely on the Information provided in making any investment decision. Rather, you should use the Information provided only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment. By navigating on our website or remaining on our subscription lists, you accept our terms and conditions and discharge us irrevocably form all responsibility.