The Long Game

This week’s theme is staying rational in an overextended market. Equities are still grinding higher, even as yields fall sharply and risk appetite returns. It’s the kind of environment where patience matters more than prediction — and that’s exactly where I’m focused right now.

In this issue, I’ll walk through the latest market moves, highlight why I took profits on $LEU and IONQ, dive into Palantir’s sudden drop and why I’m not worried, and share a few books and videos that are shaping how I think about investing and discipline.

Thanks for reading — let’s build something long-term, one week at a time.

Key Indicators:

U.S. equities inched higher this week, with the S&P 500 and Nasdaq up roughly 0.8% and the Dow gaining 0.9%. The 10-year Treasury yield dropped 8%, signaling a sharp move into bonds as markets priced in softer inflation and renewed rate-cut hopes. Meanwhile, Bitcoin surged 11.5%, extending its rally past the $120K mark and reflecting stronger risk appetite. Overall, markets remain cautiously bullish ahead of next week’s key inflation and Fed updates.

As this is my first newsletter, I want to outline the foundation of how I invest. My approach centers around long-term conviction in technology and artificial intelligence, while maintaining a structured, risk-managed framework.

I allocate the majority of my portfolio to broad index funds through dollar-cost averaging (DCA) — this ensures steady exposure to the overall market regardless of short-term volatility. Around 15% of my capital is reserved for mid to small cap growth stocks that show strong potential but carry higher risk. These positions allow me to capture upside in emerging innovation while keeping my portfolio diversified and resilient.

When evaluating stocks, I focus on fundamental valuations and beta coefficients to gauge volatility and relative market risk. However, I also recognize that in modern markets, capital flow and momentum often drive price action — so I stay mindful of where the market narrative and liquidity are heading.

In essence, my strategy blends long-term fundamentals with short-term market awareness:

Current Holdings

Recent Trades / Changes

Last week, I closed positions in LEU and IONQ, both of which returned roughly +30% over two weeks. The trades were driven by short-term momentum from the quantum computing hype and the recent surge in nuclear energy stocks.

Given how quickly sentiment and valuations had stretched, I decided to lock in profits rather than overstay the trade. These were momentum-driven positions from the start, and the move aligned well with my focus on capturing short-term trends while keeping portfolio risk contained.

Watchlist / New Ideas

With cash freed up from those sales, I’m now turning more defensive and selective:

Overall, my focus right now is on protecting recent gains while maintaining flexibility to re-enter growth names if we see a meaningful pullback.

What happened (this week):

My read: I see the recent drop in Palantir as a temporary reaction to a headline, not a change in the company’s trajectory. The concerns raised were tied to a prototype still in testing, not a failure in Palantir’s core platforms. With revenue growing nearly 50% year-over-year and profitability expanding, the fundamentals remain strong. The stock’s move looks more like a momentum unwind than a structural problem, and I believe the market overreacted. Given my long-term conviction in AI and defense analytics, I view this as a buy-the-dip opportunity within my high-growth allocation. If shares pull back further (another 10%), I’m planning to gradually add more — staying disciplined but confident in the company’s long-term story.

A Random Walk Down Wall Street — Burton Malkiel_
A timeless introduction to long-term investing. It reinforces the idea that markets are mostly efficient and why dollar-cost averaging beats trying to time the market.
→ Key takeaway: Perfect foundation for my DCA-based index strategy.

The Little Book That Still Beats the Market — Joel Greenblatt_
Simple, practical guide to value investing and identifying underpriced stocks based on fundamentals.
→ Key takeaway: Helps refine my process for spotting undervalued mid-caps.

The Psychology of Money — Morgan Housel_
Shows how behavior outweighs analysis in long-term returns.
→ Key takeaway: Stay calm and rational through volatility.

AI Superpowers — Kai-Fu Lee_
Compares the AI arms race between U.S. and China.
→ Key takeaway: Context for my tech-driven investing thesis.

Markets are showing resilience, but sentiment feels increasingly stretched — tech valuations are rich, and retail investors optimism is high. With the 10-year yield dropping sharply, I’m watching whether this triggers another leg up in growth stocks or if we see a short-term pullback once inflation data lands.

My near-term plan is to stay patient and defensive — keep cash in safer instruments like BNDW , maintain exposure to high-conviction names like GOOGL and NVDA, and use any broad market dip to scale into quality at better prices.

Disclaimer: The information provided in this newsletter is for educational and informational purposes only and should not be construed as investment advice. I am not a licensed financial advisor, and the opinions expressed here are based on my personal research and portfolio decisions. Investing in securities involves risk, including the potential loss of principal. Past performance is not indicative of future results. Always do your own research or consult with a licensed financial professional before making investment decisions.