iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,230 Blog Posts

If Markets Continue to Melt Up, There’s Only One Sector Worth Buying

The software as a services sector was higher by 3% today and represented alpha personified prior to the recent downturn. It was, mind you, the best sector to trade, sporting gains of +35%, and it will be once again — should markets break higher.

The fundamental story is revenue repeatability, the same simple business model that made NFLX so successful and took Amazon from retard book seller to AWS and then prime Gods. The subscription model is precisely where you want to remain invested, especially in names growing rapidly, like HUBS, ZEN, NTNX, and NEWR.

The giant of the industry is CRM, higher by 150% over the past 5 years — 98% better than the SPY.

According to the Exodus seasonality tool, the software sector is just getting started.

The double edged sword is embedded in the overpriced nature of the sector. People pay up for growth, especially reliable growth, so during downturns expect this sector to get its fucking brains blown out.

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