ON MIKE’S MIND
This week, I’m reflecting on what it means to be “smart” these days.
It’s clear that AI - if not smarter than us - will be.
By a lot.
… a LOT!
If you are a friend of mine and a reader of the Co/Investor Club newsletter, chances are you are pretty damned smart, too - especially around investing.
Yet, if you’re like me, you’ve made a few dumb mistakes along the way that you still kick yourself for.
Or maybe that’s your wife or husband (or financial advisor) kicking you!
I consider myself a lifelong learner - and never moreso than now.
My educational rock has been the dynamic duo of Buffett and Munger and the good ol’ Sage of Omaha reminds us “It’s good to learn from your mistakes. It’s better to learn from other people’s mistakes.”
That’s why I love this Co/Investor Club so much.
Many of you have brought us investment opportunities and ideas the rest of us never would have seen.
A prime example is Gain Therapeutics which our analytics team has written up below. Be sure to read it.
Others have connected each other to sources of funding or insight that have changed lives.
In the next few weeks, I’m going to introduce you LIVE to some of the smartest Investors and and CEOs I know.
We are in this together.
It may or may not take a village to raise a child…
But it sure takes a team of smart people (ok, with some AI helping us along the way) to make WISE, PROFITABLE investment decisions.
Lots to come in 2025.
Take Good Care,
Mike
THE MARKETS
US equities have plunged into an ice bath after a month frozen in place before seeing a bump on the tail end of Friday
S&P 500: -0.98%, DJI: +0.95%, NASDAQ Composite: -3.47%
Interest rates fell as markets begin predicting another rate cut
The 10-year yield fell 23 basis points to 4.20
The 2-year yield fell 16 basis points to 3.99, the lowest since October
VIX spiked at 22.36 on Friday morning
CNN’s Fear and Greed Index entered extreme greed for the first time since the December sell off
Cryptocurrencies fail to find footing, marking another week of loss
BTC: -11.30%, ETH: -15.66%, XRP: -15.50%
A Story The Club is Watching… Closely!
WISE WORDS
“The worst thing you can do is invest in companies you know nothing about. Unfortunately, buying stocks on ignorance is still a popular American pastime.” - Peter Lynch
Reflections on the Week…
Bulls make money, bears make money, pigs get slaughtered.
We all know that.
But Groundhogs?
A few weeks ago, Punxsutawney Phil predicted six more weeks of cold and bitter winter. But looking at the financial markets, one might wonder if, instead, Phil was instead a BEAR forecasting investor sentiment.
After months of sustained bullish momentum, the markets have hit a wall - an ice wall. Think the ice wall in Game of Thrones.
The first month of President Trump’s term has felt like being plunged into ice water—an abrupt cooling of investor confidence amid policy uncertainty, shifting economic signals, and recalibrating expectations.
Funny what a couple of months will do… or undo.
Following Trump’s victory in November, markets were exuberant, as investors reminisced of the post-2016 “Trump Rally”.
However, this optimism got crippled when the Fed implemented a quarter-point interest rate cut but signaled a more hawkish approach.
President Trump's economic agenda? Leading up to the election it felt like a hodge-podge of bold if vague - and questionable - ideas.
Sure, it sounded exciting - tax cuts, trade protectionism, and deregulation - but where were the details?
The lack of clear policy outlines created uncertainty among investors.
The clarity didn’t come. And markets experienced fluctuations.
Certainly, Trump and Musk have been taking a chainsaw to the government; many are still scratching their heads about what will stick, what’s legal, what’s smart and what is not.
Furthermore, inflation reared its ugly head once more before many of his broad tariffs went into place.
The result? Conference Board's Consumer Confidence Index, which declined by 7.0 points to 98.3, marked the largest monthly drop since August 2021.
Notably, the Expectations Index fell to 72.9 - and we want all our Co/Investor Club readers to mark this - dipping below the threshold that often signals a forthcoming recession.
Extreme fear has gripped the markets, but seasoned investors know that fear breeds opportunity. When panic sets in, valuations become distorted, and disciplined investors can find assets trading at significant discounts.
Warren Buffett, remember has been sitting on a huge pile of cash this year, like the the mysterious Cheshire Cat he often is.
He’s been frequently criticized for sitting on a large cash reserve as markets reached record highs, but maybe he knows something. As he says…
“The best chance to deploy capital is when things are going down.” - Warren Buffett
Hmmmm.
At Co/Investor Club, we are no groundhogs.
We won’t attempt to predict the weather—nor will we claim to foresee every twist and turn in the market. But we will do our best to keep the discipline to recognize value when others are fearful.
Now is the time for patience, strategy, and conviction. Don’t let market euphoria or despair dictate your decisions. Stick to your investing principles, seize opportunities when they arise, and remember…
Fortunes are made in times of uncertainty, not complacency.
The Savvy Investor…
Potential Hooters Bankruptcy to Return Control to Former CEO’s Business
Funds that Underweight Mag 7 and STILL Overperformed
Lingering Questions about a Private Credit ETF
Publisher’s Note:
Hey All,
I’m right on board with what Mike said above.
The learning NEVER stops.
Truth is, I just got off the plane with my lovely wife who is also my CEO - both figuratively and quite literally - from a conference in Austin.
We spent our days with some of the most brilliant minds in owned audience technology, media and data…
And, I’m sorry to say, our evenings going through our notes and applying what we were learning to our favorite ventures, including, significantly, The Co/Investor Club.
I learn more about investing from my conversations with Mike than with almost anyone else I’ve ever met. He’s been in the trenches for years and he can spot opportunities and pitfalls, wise leaders and charlatans, quality companies and disasters waiting to happen.
Most of all, he knows character.
And, speaking for myself, I’m especially looking forward this year to diving deeper with some of the top investors we are bringing to you in the live “Lunch at the Clubs” which will be beginning in the coming weeks - perhaps this week!
And I look forward to meeting more of you as well.
To Our Co/Success!
Adam Gilad
Publisher, The Co/Investor Club
p.s. Again - Please go here to learn more about the many benefits of becoming a Premium Member of the Club now - while we still have our 83% discount for current subscribers.
And have a great week!
If you have not already upgraded your membership…
Chat with Mike
Whether you’re an executive with investment opportunities or a college student looking to network, we would love to chat with you! Email our Founder, Mike Pruitt, at mp@coinvestorclub.com with questions and ideas or schedule a meeting.
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