is inflation going to be a problem in your view well uh we we've been saying
for some time actually since the depths of the coronavirus we were doing youtube videos
uh saying regularly v-shape recovery businesses are way behind consumers consumers are buying
all of these goods in fact that's all they can do because they're stuck at home right so they were
buying non-durable and durable goods that could be shipped to them right uh right none okay that
part of consumption is one-third of consumption and a disproportionate amount or percentage
of the market basket of consumers was in goods for the past year businesses were didn't expect it
they were behind even before the corona virus they had been lagging in terms of
capital spending in terms of inventories they were worried about inverted yield curves and china u.s
trade conflict there were many many concerns so they had been dragging their feet they got even
further behind uh and and still haven't caught up so what's hap now double triple ordering maybe
quadruple ordering uh because they just can't get the good especially companies they keep buying
and so what i believe is we are setting up for a massive period of deflation
uh now let me explain that uh there are three sources of deflation one is when
the orders these double and triple orders are canceled right now we have seen lumber correct
30 in the last week i think this is the beginning of that copper is now starting to correct and uh i
i believe that commodity prices went too far too fast as businesses were scrambling and panicking
right they were losing business to competition if they hadn't planned their inventories correctly
so that's one source of deflation but that's only cyclical deflation and we actually didn't expect
it to start now we expected it to start later in the year but i guess it makes sense now that
vaccines are here and consumers are shifting away from goods towards services or at the margin
the writing is on the wall the those are double and triple orders are going to be cancelled
prices were too high and we're probably going to see a drop in commodities but there are two
other sources of deflation out there and this is what we've been saying for quite some time
one has to do with it's a good deflation it's caused by technologically enabled innovation
and we believe when you see dna sequencing costs uh dropping 40 for every cumulative doubling in
in genome sequence or when you see a.i training costs dropping 37 to 50 percent
per year these are massive deflationary forces that are going to hit every part of the economy
ai is going to be everywhere so that's good deflation what's up investors on the back of the
recent market sell-off kathy wood has been busy rebalancing her portfolio responding to inflation
and also preparing for the pending deflation so in this video i'll be sharing with you
three top arc invest stocks which they have been adding to their flagship arc innovation etf fund
and i feel their good stock bets for this market environment so let's get straight into it
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below what inflation or deflation stocks you currently hold in your portfolio and so with
that said let's get straight into it and have a look at arc innovation etf portfolio movements rk
we can see that the top stocks which are converse have increased their positions
are in volunteer technologies twitter and draftkings they have increased their position in
palantir by over 1 million shares in the last week taking their total value to 463 million dollars
with a weighting of 2.2 percent of the portfolio and their holdings in twitter are up by over
811 000 shares taking the total value to 319 million dollars with a weighting of 1.58
and finally draftkings up by over 750 000 shares with a total value of 358 million
and with a weighting of 1.7 percent of the etf fund so collectively these three top convictions
are now valued at over 1.1 billion dollars with the weighting of over 5.5 percent of the portfolio
so whilst this may seem small i think the approach of cost averaging down
into these stocks could soon play a significant role in the portfolio
if their long-term positive outlooks play out in their three to five year time horizon
so let's take a look at what else has been happening with these top stocks
starting with palantir volunteer has a share price of 20.75 and a market capitalization
of 38.9 billion dollars its share price is down nine percent in the last month
but it has had a good last 12 months or by over 118 percent
which is fantastic and seems like there's plenty more momentum and opportunities to buy in this dip
so my strike price on this will be within the range of 18 to 19 dollars per share
so if there's any further pullback lower than 19 there will be a good entry point valancia also
recently announced their financial results for the first quarter ended march 31st 2021
their total revenue grew by 49 percent year on year to 341 million dollars within which
the u.s commercial revenue grew 72 percent year-on-year and the u.s government revenue grew
83 percent year-on-year for the outlook for q2 22-1 they expect at 360 million dollars in revenue
representing a year-on-year revenue growth of 43 with an adjusted operating margin of 23
and for the full year for 2021 and beyond they expect an annual revenue growth of 30 or greater
from 2021 through to 2025. palantir also announced the renewal of his contracts
with the united kingdom's royal navy for its palantir foundry platform volunteer software
is used by the royal navy across a broad spectrum of areas from strategic workforce
planning to supply chain management to the covey 19 response next up is twitter
twitter has a share price of 54.45 and a market capitalization of 43.4 billion dollars
its share price is down 15 in the last month but it has also had a good last 12 months or by over
66 percent which is fantastic and seems to be on a steady upward trend or be it volatile so my strike
price on this would be within the range of 48 to 50 dollars per share so if there's any further
pullback lower than fifty dollars per share that would be a good entry point for this stock
twitter recently announced that q1 was a solid start to the year with total revenue of over one
billion dollars up 28 year-on-year reflecting strength in brand advertising in march as well
as accelerating year-on-year growth in mobile app promotion revenue the total u.s revenue
was 556 million dollars an increase of 19 percent while the total international
revenue was 480 million dollars an increase of 41 percent and the operating margin of 5
reflects ongoing investments across their top objectives the average monetizable daily
active users mdaus reached 199 million up 20 year-on-year and up 7 million sequentially
driven by ongoing product improvements and global conversations around current events and for q2
2021 the total revenue is expected to be between 980 million dollars and over one billion dollars
next up is draftkings draftkings has a share price of 44.60 and a market
capitalization of 17.9 billion dollars its share price is down 21.9 in the last month
but it has had a decent last 12 months up by over 53 percent
so my strike price on these will be within the range of 40 to 41 dollars per share
and so if there's any further pullback lower than 41 that would be a good entry point for this talk
draftkings reported a first quarter 2021 financial results and for the three months ended march 31st
2021 draftkings reported revenue of 312 million dollars an increase of 253 percent compared to
89 billion dollars during the same period in 2020 draftkings is raising its fiscal year 2021 revenue
guidance from a range of nine hundred million dollars to one billion dollars to a range of
one billion dollars to 1.1 billion dollars which equates to year-on-year growth of 63 to 79 percent
so some really solid performances across all these three top stocks with some very positive
financials a pipeline of catalyst and positive outlook over the coming months so exciting times
ahead with these stocks and a good indication of why arc invests are very bullish on the stocks
you need to be aware that despite the positive outlook with these stocks investing in them is
still risky and volatile given the current market conditions so just make sure that you're planning
for any trade accordingly and it falls within your risk tolerance this video is not a buy or
sell recommendation but it's meant to bring some new and exciting companies to your attention
for you to do your own research and due diligence before making an investment decision
as always i would love to hear from you so please let me know your thoughts on these stocks in the
comment section below and what other stocks are catching your eyes lately and if you like to see
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