What Happened in the Market (and the World) This Week?
S&P 500 return this week: 2.64%
S&P 500 return YTD: 4.99%
Nasdaq return this week: -2.06%
Nasdaq return YTD: 3.09%
Well, this was a very market volatile week but for the most part, it trended in the right direction 📈📈📈.
The big news that calmed the markets materially was February’s CPI data on Tuesday. After another bloodbath on Monday, the market was able to find some reprieve after the report noted that inflation was “tame.” It resulted in a huge pop in all stocks that definitely helped my portfolio regain a lot of the losses it suffered on Monday.
President Biden signed into law the American Rescue Plan on Thursday which helped buoy the markets again and per a Deutsche survey, people across most age groups will put 37%+ of their stimulus checks into the stock market. While I’m sure the government wasn’t really expecting people to be putting upwards to half of their stimulus check into the stock market, it is nice to see people across most age groups are starting to invest in stocks again since only a little more than half of Americans own stock per a Gallup survey back in April 2020. It doesn’t matter if it’s an S&P 500 index fund or Apple stock, as long as people are putting their money in the market responsibly, I think that should help with wealth generation in the future.
On Friday, the 10-year treasury note spiked again which resulted in the Nasdaq to crumble but it made a modest comeback towards the end of the day. I’m disappointed to see how treasury yields are still negatively impacting overall growth stock performance since historically, this hasn’t been an issue.
On Monday, I was down nearly 16% YTD before the market rallied with Tuesday’s economic news. I finished the week up 1.6% or so YTD 😀. While it’s not market beating, I expect that to change in the coming months as the volatility declines. I must say it’s nice to see a positive number this week after some pretty terrible past few weeks. I expect there to be more volatility in the coming weeks, but hopefully last Monday was the market bottom and we can move on from here.
In Monday’s dip, I bought the dip and added to $SNAP, $PUBM, $PTON, $ZM and a few other positions. I also bought a few options on Sprout Social ($SPT) that I promptly sold for a profit on Tuesday after a 50%+ gain. Probably should’ve held on given that Sprout rebounded nearly 20% from their bottom on Monday.
DocuSign ($DOCU), one of my biggest positions, announced earnings this past week and while I thought the report was decent, I think the market was hoping for more since shares tanked 6% on Friday. I personally added to my position and bought a bunch of options and bull call spreads to take advantage of the share dip.
I’m relieved that my portfolio actually had a positive week after 3 straight weeks of getting beat up. While I’m used to volatility in the market, I’m not used to this amount of volatility, it’s been awhile where I’ve seen my entire portfolio tank 10%+ in a single day. I suppose the last time we saw this amount of volatility was last March. It’s crazy how far we’ve come since then.
In other news, Bitcoin hit $60k this weekend and I have been spending a lot of my free time researching how to build a cryptocurrency mining rig. I still have my GTX 1080 that I bought back in 2018 and have been mining for a few weeks. I use Nicehash and my GTX 1080 can generate around $3/day. I also bought a pre-built PC with a RTX 3070 graphics card when I saw a deal on Best Buy earlier this week. This specific graphics card can generate mine about $6/day worth of cryptocurrency. My wife is going to freak when she sees the electricity bill 😂😂.
I’m thinking about buying enough graphics cards to mine around $50/day worth of cryptocurrency. I figure cryptocurrency mining might be a way to diversify my passive income streams. From a capital perspective, to generate $1500/month, it definitely doesn’t require as much capital as real estate does. I wonder if I can write off my mining equipment on my taxes 🤔.