Picks

You may be wondering: with the market currently underperforming and investor confidence down, are we headed for another mini-crash similar to what happened after the Liberation Day tariffs? In our humble opinion, the answer is no. The current lack of investor confidence stems from the erratic behavior of the markets, which have recently been influenced by political factors. Stocks that typically moved 1-2% per week have been fluctuating by as much as 10% down and 20% up — an unprecedented level of volatility. For many, seeing their portfolio down 10% and facing the potential for further losses can be unsettling.

However, this is where value investing comes in. The key is to invest in companies with strong fundamentals, and to trust in their ability to mitigate risks and outperform others. By conducting fundamental analysis, you can identify opportunities that offer long-term value, despite short-term volatility.

Recent news has shown that Trump's Liberation Day tariffs were deemed illegal, and he is now attempting to stabilize the market by pausing various tariffs on China for 90 days. Additionally, his Gulf tour, accompanied by major business leaders from companies like Palantir and Microsoft, suggests that he may be shifting toward less contentious policies. This reduces the likelihood of drastic tariff swings in the future.

As a result, our three stock picks for this month are all equities, as we believe the market dip is driven by low investor sentiment rather than any fundamental issues. This presents a strong buying opportunity.

Pick 1 : Novo Nordisk A/S - NVO

Our first pick is Novo Nordisk (NVO). The company has been under significant pressure in recent months. Initially, its stock dropped from around the $120 level due to underperformance in its obesity drug trials. The stock continued to decline as tariffs were implemented, followed by concerns that the U.S. administration might lower prices on pharmaceuticals imported from outside the country, which could negatively impact NVO’s profitability. The situation worsened with the looming pharmaceutical direct tariff and, more recently, the departure of their CEO. These events would likely have caused most companies to collapse. However, despite the severe impact, NVO's stock has slowly been climbing back, currently trading around $70—near its all-time lows. This presents an excellent buying opportunity with a strong long-term outlook. Many investors forget just how dominant NVO was just a few months ago, and the company remains one of the most dominant in the world. With strong management and adaptability, we are confident that NVO will thrive over the next few years. While short-term volatility is to be expected, the company’s strong fundamentals, solid management, and favorable valuation multiples position it well for a return.

Pick 2 : NVIDIA Corporation - NVDA

Our second pick is NVIDIA. AI, AI, AI—this is all everyone hears about today. We are on the verge of a global revolution, one that will reshape how our planet, economies, and countries function. And who is at the absolute forefront of this revolution? NVIDIA.

Amid uncertainty, they continue to impress, pushing forward and solidifying their position as a global powerhouse. Recently, they secured a deal with the Saudi Arabian AI project HUMAIN, committing to purchasing $600 billion worth of chips. This is just one of the many groundbreaking projects NVIDIA is involved in. As highlighted in our macro report, NVIDIA is also working closely with the U.S. government. Simply put, they are on another level and continue to rise.

With strong valuation multiples, excellent management, adaptability, and a visionary CEO driving the AI revolution, NVIDIA is poised for continued success. Let me ask you this: Where do you think AI is headed in the coming years? Your answer should determine your position on NVIDIA.

Currently, NVIDIA is approaching key levels of $140 and aiming to test the $150 mark again. Will we see NVIDIA reach an all-time high and boost this low-investor-confidence market? We believe so.

Pick 3 : Pinduoduo Inc. - PDD

PDD has been one of our most-watched stocks over the past few years, and it remains a fundamental valuation gem. Consistently ranking in our top 5 across many reports, it has risen to levels we believe it could sustain. However, recently, due to geopolitical and tariff tensions, PDD has come under pressure. Relations between the U.S. and China have been tense, and while it’s easy to simplify the situation, there are signs of improvement, and it’s likely they may continue to improve. No one, including those in government, wants a recession in either the U.S. or China.

Following this recent mini-crash, PDD dropped to roughly $90 amidst the stress—only $90. Given the circumstances, one might expect a far greater decline. However, PDD has demonstrated strong resilience with a solid barrier around the $80 to $90 level, which it has tested several times. Currently trading near $95, the stock is historically very cheap. For long-term holders, this could present significant growth potential, as it might eventually retest the $150 level it touched a few months ago.

The recent 20% drop from the $115 level was mainly driven by earnings that underperformed expectations, but we believe this is an overreaction. Given PDD’s immense global presence and the strong valuation beneath it, the company is poised for a return once the market stabilizes.

In the short run, PDD may experience some volatility as it tests the $80 to $90 support level. However, in the long term, we believe this won’t matter much, as PDD has much more room to grow than just a few dollars.

Pick 4 : Bitwise Bitcoin ETF - BITB

To address short-term volatility, we’ve selected the Bitwise Bitcoin ETF. While any Bitcoin ETF operates similarly, the question arises: is Bitcoin, currently near an all-time high, a good investment at this moment?

In our opinion, the answer is yes. Bitcoin remains a volatile asset, often experiencing daily price fluctuations of 10% or even 20%. As a result, it is crucial to approach Bitcoin with caution, investing only what you are willing to lose. Despite its volatility, Bitcoin offers substantial upside potential.

Blockchain technology, while still in the early stages of widespread adoption, continues to find practical applications across various sectors. Although cryptocurrencies have not yet been fully integrated into the global economic system, there is strong belief that this shift could occur soon. The increasing acceptance of blockchain could further boost Bitcoin’s value.

Larry Fink of BlackRock recently stated that he believes everything will eventually be tokenized, signaling growing institutional support for cryptocurrencies. With evolving regulations in the U.S. and a potential shift toward crypto-friendly policies, Bitcoin could continue to rise in value.

In times of uncertainty, Bitcoin is becoming an asset that many turn to as a store of value. With traditional markets experiencing heightened volatility and gold and silver near all-time highs, we believe Bitcoin has the potential to rise and potentially outperform the S&P 500 in the near future. Given these dynamics, Bitcoin’s growth could continue as more investors look for alternative assets during periods of market instability.