Here's to 2021
2021 was a "Grassy" year at Grass Clippings. We truly went out on a limb. We opened a retail store, grew the Grass Clippings Open, and have connected with people all over the country. It's crazy how a simple garment can create a community. We appreciate all the support and look forward to another Grassy year with ya'll.
In this issue:
Billy's Monthly Insights: *things Billy observed in December
- The Next Tiger Woods?
- The Time to Strike: The Arizona Cardinals
- Bull Market Continues?
- David vs Goliath : Ex Athletes Square Up
Updates from the Shop
- Corn Feed
- New Products
Investing 101 *a Hail Mary approach
- Roll Tide
1. The Next Tiger Woods: Charlie Woods
Folks, collectively golf fans have sadly thought about a post Tiger golf world for months now. Last year we were confronted with those thoughts after Tiger suffered a career threatening leg injury in a gruesome car crash. Right when we thought his career was over, Tiger once again proved us wrong suiting up for the PNC Championship which he finished second alongside his son Charlie. The sliver lining of the event was the next Tiger Woods may just be his son Charlie. It was incredible to see the similarities not only in their swings, but their demeanor. You'd think Charlie has already won a Masters Championship. Although it was tough to see Tiger walk around with a noticeable limp, it was refreshing to think what the younger Woods may have in store for golf fans .
2. The Time is Now: The Arizona Cardinals
Ya'll ever wonder why the likes of Aaron Rodgers, Russell Wilson, Drew Brees, and others only have one Superbowl to their name? I remember watching Russel Wilson break onto the scene thinking he was going to win 5 Superbowls. Same with Aaron Rodgers. But here we are and they have both struggled since their first. The concept is simple. Aside from Tom Brady, NFL teams have a short window to win a Super Bowl. Typically when a phenom quarterback is drafted the clock starts. Those rookie contracts allow the team to allocate funds elsewhere throughout the roster. It's why Russel Wilson played with the Legion of Boom early in his career. Now the Seahawks are stuck paying an aging Russel Wilson and sit at the bottom of the NFC West. For the Arizona Cardinals, their time is now. Kyler Murray is the guy plain and simple. His rookie contract runs through 2022 when the Cardinals will be forced to fork over a whole mess of money. December was a disaster for the Cards and if they can't right the ship their window for a championship may pass them by.
3. And the Bull Market Continues... For Now
Well. Well. Well. Here comes the Fed. It seems they've finally realized that inflation is a real thing. Hell, I paid over $4 per gallon to fill up my pickup a few weeks back. They announced tapering of bond buying in mid-December and hinted at rate hikes in 2022 and subsequent years. But again they hinted. Feels like they've been hinting for awhile. I'd expect the the markets to continue to do well until rate hikes actually come to fruition. As for Crypto, this could be the final run up like we saw in 2017 that eventually led to a bear market.
4. Deron Williams vs Frank Gore Dust Up
You could say David beat Goliath here. The last person Billy would want to fight is the man who holds the record for most games played at running back in the NFL. It seemed like an easy bet. Gore played 15 season at a position that averages a career length of 2.5. He's tough to say the least and one would think it would translate to the boxing ring. On the other hand, I didn't think Deron Williams belonged in the same arena with Gore. Over the course of his NBA career Williams was dubbed soft as his performance waned later in his career. Well folks, tip your cap to Deron Williams. He beat Gore via a split decision and shocked the world or at least Billy.
Well folks as we bring in the new year it's prudent to due away with last year's harvest. At Grass Clippings, the team has been laboring over the corn growing in front of the shop for months. To put a kibosh on 2021, the team harvested the corn and received less than 1 pound of Southwestern Flint corn.
We considered the event a "corn feed". If you're not familiar, a corn feed is a Midwestern Festival where all the town folk gather for some good ol' corn eatin'. Hell, I've seen corn feeds where a town will eat 10,000+ ears of corn. It's the reason the term corn fed gets thrown around in the Midwest. Although we were unable to feed the community with our meager harvest, we've learned valuable lessons in the art of growing corn.
*As always, this information is in NO way financial advice. It is merely an experiment to track risk on strategies with a go for broke mentality. Buckle up.
Folks, what a year it's been. Money seemed to grow on trees. The Fed continued to pump money into the markets. The S&P 500 increased by over 25% and broke all time highs 68 different times. Bitcoin started the year at $29,000, Ethereum started at $738, and the thriving video game retail chain, Gamestop, began the year trading at $17.25. Fast forward a year, Bitcoin is trading at $47,000, Ethereum $3,700, and Gamestop $148 respectively.
Sadly, interest rate hikes in 2022 could be a buzz kill to this party. If you recall, 2017 was a banner year for the stock market as well as cryptocurrencies. The following year the Fed rose interest rates four times and things went South. Crypto plunged into a bear market and the S&P 500 performed its worse since 2009. Although Billy welcomes 2022, I'm treading lightly. We might shift focus towards sports gambling in 2022, but for now we're staying the course.
Message from Killer the CFO:
Abysmal, embarrassing, pathetic....The holidays we're not nice at all to Billys portfolio. Rounding out 2021 with a portfolio return of -60.76% it's hard to imagine how dark things are in the Dobson household right now. Rumor has it his kids christmas gifts have been returned to provide some extra liquidity to make an aggressive run in 2022. Stay tuned ladies and gentlemen, this is going to be a wild ride!
Investment tracker doc can be accessed here.
Folks there's no way around it, we "took it in the shorts" this month. We decided to get aggressive at the same time policy changes were announced, but that's the nature of the beast when you're chasing higher returns. First rule of Investing 101: do not despair. There's always time to make up for poor allocations and here at Billy's table were ready to get the train back on track. We're going to take a much more defensive play this month (relatively speaking) and stick to the bellwethers. We're banking on the "January Effect" with a mix of crypto and college football.
Allocations for January 2022:
1.Bitcoin - $2,000
In the past two years, Bitcoin has performed very well in the month of January: 2020 (+30%), 2021 (15%). We're anticipating a similar performance in 2022. Inflation isn't going anywhere and Bitcoin remains the best hedge to a depreciating dollar. It's worth noting Gold just posted its worst year since 2015.
2.Ethereum - $1,000
Ethereum continues to host the most activity in crypto and it's not even close. Daily fees have averaged $35 million in the last 7 days which points to consistent usage. Ethereum truly became a deflationary asset this past summer and we believe we'll start seeing the positive effect early in 2022.
3.Alabama vs Georgia (Bama +2.5)- $1,000
Folks, I get the notion that it's tough to beat the same team twice, but I'm not betting against Nick Saban. He's 7-2 in National Championship games and is being gifted 2.5 points in this contest. Feels as if people forget Alabama thumped Georgia 41-24 just a few weeks back. I know Alabama's 13-1 season has been underwhelming for their standards, but they always show up on the biggest stage. The best coach in college football history getting points? I love it. Roll Tide.
Folks, we're bullish on 2022 at Grass Clippings. It's plain and simple. We hope to see you around.