Our Most Important Post Yet.

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Markets are pointing higher this morning. But do not chase. Remember, don’t get caught up in narratives about what assets are “supposed” to do. Correlations change depending on the macro environment — interest rates, liquidity, and equity market conditions. (Read until the very end.)

We’ve said this before and we will say it again, most “Investors” regurgitate the news like birds and have no real clue what they are doing. You need to focus on the global macro then filter down into what is relatively outperforming and what is not. We have been saying this for months, despite most of the market commentary you hear. Interest rates are going higher. Keep a close eye on the 10-year moving above 4.30%.

• Rotate out of the digital (software) and into companies with physical assets (AI infrastructure, hardware, energy etc…)

• Equities remain in an uptrend, but we are not deeply oversold yet. VIX over 35 would be a great spot to start allocating.

• Focus on companies and assets such as hardware, infrastructure, cigarettes, and energy — things that cannot be disrupted by AI, because it will happen.the winners are largely tied to physical infrastructure, compute, power, and hardware.

• AI cannot disrupt physical assets. (Don’t forget about collectibles). We started GMG Collectibles for this sole purpose.

• Bitcoin is starting to outperform Gold and will continue.

VERY IMPORTANT INDICATOR: % of stocks above the 50 day moving average. We would start to consider the S&P oversold when this indicator is below 25%

S&P 500: Here are our continued levels we are watching.

10 Year Interest Rates will accelerate if it gets above 4.3%.

Again, we are STRONG sellers of software vs the S&P

Tesla is in a great spot. Most people we talk to have no clue what is coming with the Optimus Robot. A TSUNAMI.

March 2nd we said: “If Bitcoin bounces, it bounces here.”