As always, this is not investment advice! Please do your own due diligence and take your own financial situation into account. Everyone has a different financial situation, which means different tolerances for risk and ability to take risk. What is appropriate for me may not be appropriate for you.
We live in a Chaotic era, an era of Change.
Nothing made that more clear than the last few weeks.
It’s very sad to see the world return to war and know that many people and families will get torn apart by violence.
The world may appear to be changing at a rapid pace very suddenly, but the reality is that the world had likely already been changing in character and substance beneath the surface.
Slowly, then suddenly.
The world is changing because much of the world as we know it is based on a number of post-World War II assumptions that are no longer true. The US military is no longer unchallenged. The US economy is no longer half of the global total. And most importantly, technology has rewritten geography.
Now we are beginning to see its outcome as the last bits of resistance gives way to its new shape and form as new forces come into play.
How will maps change?
How will governments change?
How will economies change?
How will institutions change?
Change tends to come in waves. Because every change can be a catalyst for more change.
The world is usually in a state of equilibrium. This means everything fits together in a way that usually just works. But the moment you introduce a substantive change, it might not work anymore. And it may be a long journey to find the new equilibrium where it will begin to work again.
As the common phrase goes – Volatility tends to create more volatility.
All of these things reinforce my view that it is best to stay invested in companies that have the most degrees of freedom, companies that can navigate the changing world no matter how it evolves. This means businesses with strong balance sheets. This means businesses with critical and irreplaceable capabilities. This means businesses that can evolve quickly.
Given the state of global affairs, it seems inappropriate to discuss at length something as casual as investing so I’ll keep this brief. The usual table is presented below. Most of the performance was driven by general market moves with many of the outliers driven by earnings (SHOP, SDGR, SNAP, Z). NET performed well as it is one of the world’s most important providers of network security services, particularly against DDoS attacks. NET is currently helping defend Ukraine against Russian cyberattacks.
Let’s see what March brings…hopefully a step back towards peace.
Disclosures: Of the stocks mentioned, I own shares in NET, SE, PINS, U, OKTA, MRNA, SDGR, KIND, UBER, PLAN, AYX. I have no intention to transact in any shares mentioned in the next 48 hours.