Sentiment mispricing in major equities
The guest argued that sentiment shifts in Costco, Moderna, and Amazon are not fully priced in, creating potential long and short opportunities.
The argument
According to the guest's sentiment model, Costco and Moderna exhibit positive sentiment that has not yet been reflected in their stock prices. Conversely, Amazon has experienced negative sentiment shifts with only average returns, suggesting unpriced downside that could present short opportunities.
The thesis, stress-tested
✓ What validates it
- ✓Price action aligning with the identified sentiment gaps over the guest's typical three-month holding horizon
▸ Risks discussed
- ▸Sentiment indicators can shift rapidly, requiring nimble portfolio adjustments
- ▸Costco's high valuation multiple (50x PE) may limit upside despite positive sentiment
Hear it yourself
"episode is brought to you by the unlimited HFGM global macro ETF, ticker HFGM. Later in the show, you'll hear more about HFGM, currently the number one Morningstar rated fund since its inception in The US macro trading category. Let's get into it. I'm joined today by Jacob Pojani, co chief investment officer at Bridgeway Capital Management and the portfolio manager at the Global Opportunities Fund."
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