“This one’s next” – here’s why WallStreetBets founder Jaime Rogozinski uses Trump’s SPAC as the new clear memes business
Keeping a close eye on Reddit’s WallStreetBets forum has been a good idea for investors.
The 11 million-member internet community led the charge during GameStop’s two weeks at 1,500% in January and is largely responsible for AMC Entertainment’s huge rise to 1,800% since the start of the year. .
These incredible gains led to the downfall of several hedge funds that made big leveraged bets against the companies in question, ultimately finding themselves caught on the wrong side of the trade.
But what’s the next opportunity for retail investors?
In a recent interview with Stansberry Research, WallStreetBets founder Jamie Rogozinski discussed a few ideas – including Trump-linked SPAC – that could provide the next round of big short-term returns.
Some of these suggestions are particularly volatile. So make sure you do your due diligence before you do anything.
Digital World Acquisition Corp (DWAC)
GameStop and AMC aren’t the only titles to hit the moon this year.
In late October, shares of Digital World Acquisition Corp fell from less than $ 10 each to $ 175 before forgoing part of the earnings.
DWAC is a specialty acquisition company that is considering merging with a social media company linked to former President Donald Trump.
Trump’s SPAC is clearly “a new stock on the menu” for the WallStreetBets crowd, Rogozinski told Stansberry.
When asked what actions he thought the forum would go up next, he replied, “I think it’s clear this one is next and I think it will be some time before they do. move on to the next one. “
âThis is not a short-lived situation. I believe the movement is based on the inherent demand for this thing. There is a lot of excitement and I think the price speaks for itself.
Today, DWAC is trading at around $ 57 a share, scoring a return of almost 500% in just a few weeks.
Famous investors like Warren Buffett and Cathie Wood are widely followed by retail investors.
But Rogozinski believes the investments made by House Speaker Nancy Pelosi’s husband are also worth following.
In an interview with Business Insider last month, Rogozinski discussed the potential of a Pelosi-themed exchange-traded portfolio aimed at retail investors.
âI had this idea, kind of a joke, but I can’t shake it, so I’ll probably start pushing, who is this ‘Nancy ETP’,â said the founder of WallStreetBets.
And in his interview with Stansberry, Rogozinski explained that the idea is to “capture some of these really exciting returns from the Pelosi family portfolio.”
A Nancy FTE might never become a reality. But investors can always keep a close eye on the family for any ideas. Some of their biggest investments include tech giants Apple and Microsoft, which represent around 17% and 14% of the Pelosi portfolio, respectively.
True, shares of Apple and Microsoft are currently trading in triple digits. But a popular investing app lets you buy fractional shares with as much money as you are willing to spend.
This one might surprise.
As the founder of a subreddit known for âyolo-ingâ on out-of-the-money call options, Rogozinski’s personal investments aren’t exactly exciting.
For his personal portfolio, Rogozinski enjoys the peace of mind that comes with diversified, low-commission exchange-traded funds.
“If I am really investing,” Rogozinski explained in the interview, “I am doing it right.”
âI diversify, I buy and I keep, I leave it there, I collect dividends. I’m happy with it.
Investors today have dozens of low-cost ETF options to choose from when it comes to achieving broad diversification.
For example, the SPDR S&P 500 ETF tracks the price and return performance of the S&P 500 Index and has a gross expense ratio of 0.0945%.
Another example is Invesco QQQ Trust Series 1, which tracks the Nasdaq 100 Index and has an expense ratio of 0.20%.
A little-known alternative
With inflation rising at a breakneck pace, it would be hard to fault investors for ignoring Rogozinski’s words altogether.
The good news? You don’t need to limit yourself to the stock market at all.
If you want to invest in something that has little correlation to the ups and downs of the stock market, you might want to consider a neglected inflation hedge: fine art.
Contemporary art has already outperformed the S&P 500 by 174% in the past 25 years, according to the Citi Global Art Market chart.
Investing in art by Banksy and Andy Warhol was once an option only for the ultra-rich. But with a new investment platform, you can also invest in iconic artwork, just like Jeff Bezos and Bill Gates do.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.