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Takeaways From Under The Bamboo Tree with Gianni Di Poce

Our guest this month was Gianni Di Poce, Financial analyst The Mercator.

The Bamboo Team
Nov 30, 2020 • 1 min read

Don’t look at markets from a linear perspective.

  • It goes up and down, it’s supposed to go up and down.
  • The markets are seasonal as well. There are certain times of the year when markets do better than others. December is one of those times. Some investors believe in selling in May right before they go on vacation. Between May and September, the markets tend to cool off.
  • The ability to stick to an investment strategy can sometimes matter more than the strategy itself.
  • Gianni stops losses at 7%-8%
  • Gianni will never put more than 20% – 28% of his portfolio in more than one trade.
  • He believes in treating your portfolio as a business and see your losses as expenses

Gianni’s System – The 3 Delta Systems

  • He studies the Chart Pattern.
  • He looks for patterns in the stock’s performance and buys.
  • He looks at volume. If you know when the portfolio managers with huge amounts of money are buying then you can buy alongside them because they have the money to move the market.
  • Relative Strength. If you buy the fastest rising stock in the fastest rising sectors, you will always outperform the market. In 2020, if you had bought a lot of FANG stocks you would have outperformed the stock market.

Fundamental Analysis vs. Technical Analysis

  • Sentiment follows price and not the other way around. People are most excited about a stock when it’s at the top and most afraid when it’s at the bottom.
  • Fundamentals matter but avoid relying on them because fundamentals are a lagging indicator. A company’s stock is trading daily but companies report earnings quarterly.

To Build Passive Income From The Market

  • You have to be willing and able to do research outside the market hours.
  • Decide if you’re willing to invest for dividends or appreciation and if you are a long term investor or short term investor.
  • The longer-term you are, the more risks you can afford

Gianni likes

On Cannabis

  • He thinks there are too many investors in Cannabis at the moment and that the market is not yet as structured as it can be – there is still a big black market for it.
  • He thinks there will be a lot of mergers and acquisitions in the sector.
  • He thinks the least risky way to expose yourself to Cannabis is the ETFs.
  • He likes Canopy Growth (NASDAQ: CGC), Cronus Group, ETFMG Alternative Harvest ETF (NYSEARCA: MJ)

Sectors Gianni’s excited about for the next few years

  • Blockchain and Cryptocurrencies: Governments are becoming open to it
  • Biotech – a lot of companies are making amazing strides in research and Covid-19 has emphasized it, so more money will pour in there

On the future of work from home stocks

  • Gianni doesn’t think work from home will change much

Companies that have gotten a Covid bump but will not do well in the long term

  • Gianni thinks the big tech stock will face some form of regulation and it may be a medium-term headwind.

In the next decade

  • Gianni is very interested in what’s happening with Crypto. He doesn’t care about the individual coins but thinks companies will begin to adopt blockchain.
  • He sees a localization of supply chains.
  • He believes interest rates will rise, bank stocks will make more money, and oil company stocks will make more money too.

Toss or Keep

Tesla (NASDAQ: TSLA) – Keep
Novavax (NASDAQ: NVAX) – Keep
Pfizer (NYSE: PFE) –  Toss
Zoom (NASDAQ: ZM) – Keep
Fastly (NYSE: FSLY) – Keep with reservation
Atlassian (NASDAQ: TEAM) – Keep
Palantir (NYSE: PLTR)– keep
Solo (NASDAQ: SOLO) -Keep
Nio (NYSE: NIO) -Keep
Jumia (NYSE: JMIA) – Keep
Boeing (NYSE: BA) – Toss
Disney (NYSE: DIS) – Toss
Virgin Galactic (NYSE: SPCE) – Keep
Teladoc (NYSE: TDOS) – Keep
Airlines – Toss
Cruise lines – Toss
Pinterest (NYSE: PINS)– Keep

Forecasting – Hold a stock for

5 minutes – Penn National Gaming, Inc (NASDAQ: PENN)

1 Day – Cronos Group
1 week – Micron Technology (NYSE: MU)
1 month – Advanced Micro Devices (NASDAQ: AMD)
1 year – Cloudera Inc NYSE: CLDR

Next decade –

RIOT and MARA

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The Bamboo Team
The Bamboo Team
Nov 30, 2020 • 1 min read

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