Nvidia (NVDA)

Speaking of year-to-date performance, Nvidia stands out — although not in a good way.

As a leading manufacturer of graphics cards, Nvidia shares have had a solid bull run over the past decade. But that rally came to an abrupt stop towards the end of 2021. In 2022, the stock has fallen about 47%.

Nvidia’s plunge is substantial even when compared to other beaten-down stocks in the semiconductor sector.

The business, though, is doing well, making the stock a particularly intriguing contrarian idea. The chipmaker generated $8.29 billion of revenue in its fiscal Q1.

On June 17, Paul Pelosi exercised 200 call options on Nvidia (that were expiring on June 17) at a strike price of $100, valued at between $1 million and $5 million.

The transaction comes at an interesting time. The Senate is expected to vote on a bipartisan competition bill that includes a $52 billion subsidy for domestic chipmakers. Voting could begin as early as Tuesday.

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Visa (V)

The disclosure shows that Paul Pelosi sold 10,000 shares of Visa on June 21 worth between $1 million and $5 million.

The Pelosis are no stranger to the credit card giant. In 2011, it was reported that they participated in Visa’s initial public offering in 2008. Back then, the power couple were able to purchase 5,000 shares of Visa at the IPO price of $44.

Visa conducted a four-for-one stock split in March 2015, so its IPO price on a split adjusted basis was $11.

Now, Visa shares traded at between $193.73 and $196.73 on June 21. If Paul sold the 10,000 shares at the day’s low of $193.73, he would have received $1,937,300 from the transaction. If those were the shares bought at the company’s IPO, their cost basis would be $110,000 (10,000 shares times $11 per share), and the couple would have made a handsome profit of $1,827,300.

In 2022, Visa shares slipped around 5% — not a stellar performer, but still better than the S&P 500’s double-digit decline in the same period.

Apple (AAPL)

It’s easy to see why Apple could be special: No one who spends $1,600 for a fully decked-out iPhone 13 Pro Max would call it a steal, but numerous consumers love splurging on Apple products anyway.

Earlier last year, management revealed that the company’s active installed base of hardware has surpassed 1.65 billion devices, including over 1 billion iPhones.

Today, Apple is a tech behemoth commanding around $2.4 billion of market cap.

The business is also growing. In the March quarter, the company’s total revenue increased 9% year over year with services revenue soaring to a new all-time high.

The stock, however, is not immune to the market sell-off and is down 17% year to date.

On June 17, Paul Pelosi sold 50 call options on Apple (that were expiring on June 17) with a strike price of $100 valued at between $100,000 and $250,000.

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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