Bitcoin-related equities

Lee has long been a proponent of cryptocurrencies. In October 2021, he said that the price of bitcoin could soar to as high as $168,000.

While bitcoin has pulled back over 20% year to date — it now trades at around $37,500 apiece — Lee still considers it as one of his top plays.

He likes bitcoin over other cryptocurrencies because it’s highly liquid and relatively safe from a regulatory perspective.

“We know that in February there may be some Executive order coming from the White House, and that might make bitcoin a lot more appealing,” Lee said.

Investors can buy bitcoin directly. But there are several publicly traded companies that have tied themselves to the crypto world.

Enterprise software technologist MicroStrategy purchased approximately 660 bitcoins between Dec. 30, 2021 and Jan. 31, 2022, bringing its total bitcoin count to 125,051 — a stockpile worth roughly $4.7 billion.

Investors can also check out Coinbase, which runs the largest cryptocurrency exchange in the U.S. It earns a transaction fee every time someone buys or sells on the platform.

MicroStrategy and Coinbase shares are down 40% and 28%, respectively, year to date. If bitcoin makes a comeback, these stocks will likely spike in step.

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Energy stocks

Lee has been very bullish on energy stocks over the past year, even telling investors last summer to HODL — an acronym for “hold on for dear life.”

And he’s been bang-on. Fueled by rising energy prices, energy was the S&P 500’s best-performing sector in 2021, returning a total of 53.4% vs the index’s 28.7% total return.

The sector’s upward momentum has carried into 2022.

While the broad market is deep in the red so far this year, energy stocks keep on climbing.

The Energy Select Sector SPDR Fund (XLE) is already up 18.5% year-to-date. Oil giants like ExxonMobil and ConocoPhillips are up more than 20% in 2022.

FAANG

FAANG, which stands for Facebook (now called Meta Platforms), Amazon, Apple, Netflix and Alphabet, is another group that Lee is bullish on.

As the largest players in their respective verticals, these mega-cap tech stocks have been in high demand for years. But a few of them are getting pummeled at the moment.

Netflix shares plunged 22% following its Q4 earnings release due to subscriber growth concerns.

Meta, which owns some of the largest social media and messaging apps in the world — Facebook, Instagram, WhatsApp and Messenger — sank 26% on Thursday on weaker-than-expected revenue growth for the next quarter.

E-commerce king Amazon popped as much as 8% Thursday after posting a solid earnings beat. But it’s still off about 20% from its 52-week highs set in July.

Apple and Google are down slightly in 2022 despite posting solid quarterly results recently.

For long-term investors that have been waiting patiently on the sidelines, it might be a prime opportunity to finally buy the group.

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Fine art as an investment

Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.

That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.

Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.

On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.

Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. Prior to joining the team, he was a research analyst and editor at one of the leading financial publishing companies in North America. An avid advocate of investing for passive income, he wrote a monthly dividend stock newsletter for the better half of the past decade. Jing holds a Master’s Degree in Economics and an Honours Bachelor of Science Degree, both from the University of Toronto.

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