While MM has no interest in buying BNPL company ZIP, we do believe it is providing a potential roadmap for the next 6-months, especially with regard to high growth / Beta stocks.
- ZIP has been smashed over the last 18 months as bond yields, inflation and interest rates have exploded on the upside i.e. growth at any price went out of the window big time!
- However the stock rallied an amazing +300% in just a couple of weeks when bond yields softened from mid-June, we feel history could repeat itself over the coming months.
We are looking for another strong recovery from high risk, small caps, tech etc if we do see a failed pop on the upside by bond yields i.e. it will be time to be a brave contrarian investor.
MM believes “risk assets” will follow a similar path to ZIP & bond yields
Add To Hit List
