September Market Update 💀🚀
NFTs declared dead as we enter Uptober
In line with history, September was weak for equities and crypto. Higher oil prices are going to soften the otherwise expected precipitous drop in inflation prints in the coming months. However, I still expect inflation to continue to drop and don't see the Fed or Bank of Canada hiking any further and global liquidity to keep rising. While some, like Michael Bury (of The Big Short fame) think we are about to get rocked with a global credit event, I fall into the camp that this was a great buy the dip opportunity ahead of October (“Uptober") and a Q4 rally in the Nasdaq 100 and crypto through year-end. A cornucopia of Bitcoin & Ethereum ETFs are likely to be approved within the next 7 months. This is certainly not priced in and will have a meteoric impact on adoption, user growth, and price. Other Layer 1 chains like Solana, Fantom, Polkadot could be a good entry here. NFTs may have hit rock bottom as Rolling Stone and other outlets declare the asset class as dead and laugh about it (just two years ago they were praising them and touting their novelty). Pop media sentiment is usually a great contrarian indicator. Meta’s new Ray-Ban glasses should accelerate the move to augmented reality and the confluence of NFTs, DeFi, AI, and media. Overall, I feel very underexposed to crypto and hope to have some more time to accumulate before lift off.
My top investment ideas are CloneX, Otherside Koda, Bored Ape Yacht Club, Checks, Opepen, Otherside, RTFKT Animus Egg, RTFKT MNLTH X, RTFKT x Nike Dunk Genesis CRYPTOKICKS, Doodles, Ethereum, Bitcoin, Solana, and ARKK.
RTFKT x Nike Air Force Ones are shipping in October, Project Animus update must be close, and the Nike Dunks will be forgeable.
Yuga’s Legends of the Mara just launched, providing utility to Kodas, Otherdeeds, and all the other Others NFTs. Yuga announced partnerships for the Otherside and hoping we get an update on the next trip to the Otherside this month. BAYC announced a collaboration with A Bathing Ape, and with Apefest coming up in early November (in Hong Kong - global luxury goods capital) we should see some more announcements and activity ahead of that.
The next investment idea will be out soon. If you haven’t already, please upgrade your subscription now to receive it when it is published.
To the moon and beyond,
Andrew
Disclaimer
The content of this letter is for informational and entertainment purposes, and should not be construed as personal investment advice.