It has been a tough 60 days for many tech stocks and many of the trend stocks I have owned.
While everyone focuses on when it will end and why it started, the smart thing to do is follow the money. Kara Swisher says that ‘Nobody knows‘. She is right…NOBODY in her line of reading or work knows. Angels will continue to invest through this correction, Y Combinator classes will continue to overflow, private late stage financings of hot companies like AirBnB will continue and Salesforce mega campus will get built.
In the meantime, huge amounts of money are flowing everyday in the markets and so far it is out of technology and into energy. JC shows you where and how in this post.
In this next post,JC dives into why Energy is better than Technology.
The headlines are always confusing. Today, you won’t read many headlines about the money flow into energy. You do not have to rush to your broker and swap out of Facebook into Exxon, but you should understand that it is happening behind the scenes.
I can’t predict how long it will take for ‘Energy Trade’ to make the cover of Business Week with some 70 year old white dude holding a bloody dagger standing on Mark Zuckerberg’s throat, or if the Energy trade is anything more than a short term phenomenon. I do know that I want to invest in areas where money is flowing. That is part of my job.