You're receiving this email as part of your subscription to Lou Baseneseâs Trend Trader Daily. [Unsubscribe](. [Trend Trader Daily]( Year in Review in 10 Charts: The "Return-to-Work" Trade Thursday, December 30, 2021 Omicron surge be damned! Earlier this week, Goldman Sachs (GS) pushed ahead with plans to have its employees return to work. How are they justifying it? By adding additional layers of precaution⦠Per Bloomberg, the storied investment bank will require Covid-19 vaccination booster shots after February 1. And in the meantime, the company is increasing mandatory testing to twice per week. Consider this the final indication: After more than two years of dealing with lockdowns and work-from-home requirements, American people and companies wonât be deterred from a return to work and (semi) normalcy. And that, my friends, smacks of another ongoing trend we can keep profiting from in 2022⦠> ADVERTISEMENT < The Forever Battery: Making Gas Guzzlers Obsolete Only 2% of cars sold in the U.S. today are electric vehicles... but that's about to change â FAST. A new battery breakthrough is ready to hit the market. It could revolutionize the $2 trillion automotive industry... and could soon make gas guzzlers obsolete. This technology is predicted to cause a 1,500% surge in electric vehicle sales over the next four years. The company pioneering this new battery could be the investment of a lifetime. [Click here for details.]( Going, Going, Gone⦠Iâve been warning about a day of reckoning for the âwork-from-homeâ trade for over a year. For instance, in March 2021, [I wrote](: âIâm 100% convinced that Zoom Video Communications, Inc. (ZM), the poster child for working from home, is destined to crash and burn as the world re-opens and returns to some semblance of normal.â Sure enough, the stockâs been cut in half since that time. And itâs headed lower still.
(click image to enlarge) How can I be so sure? Because the data says so. Consider: The entire global collaboration software market stands at about $13 billion today. Zoom commands less than a 10% market share, and yet it boasts a $56 billion market capitalization. Translation: Even if we assume that, one day, Zoom will garner 100% market share (not going to happen), itâs still trading for a staggering four times the entire market. In other words, itâs still way overvalued. Hereâs the thing: the same can be said for countless former high-flying stocks, which continue to plummet as the âwork-from-homeâ trade unwinds. Iâm talking specifically about companies I warned you about before, including Peloton Interactive, Inc. (PTON), which is down 77% in 2021 alone.
(click image to enlarge) Heck, Iâm so convinced that Peloton is doomed, I promised on national television to give away my Peloton bike if the stock rebounded sharply in 2022 like the bullish commentator told viewers to expect. Then thereâs Robinhood Markets, Inc. (HOOD), which dropped over 50% this year, as first-time traders learned the hard way that investing isnât easy.
(click image to enlarge) Then, of course, thereâs DocuSign, Inc. (DOCU), which dropped 43% in a single day, erasing roughly $20 billion in market cap. DocuSign serves as a poignant reminder of what happens when investor sentiment shifts. It gains momentum as time passes. So instead of gradual and ultimately major declines like we witnessed in shares of Zoom and Peloton, the massive declines occur instantly. Most investors are learning this lesson the hard way, as the chart below of a group of the marketâs most popular âwork-from-homeâ stocks recently hit the skids.
(click image to enlarge) This index of equal-weighted, monthly rebalanced stocks includes Activision Blizzard (ATVI), BioNTech SE (BNTX), Chegg (CHGG), Chewy (CHWY), The Clorox Company (CLX), Moderna (MRNA), Netflix (NFLX), Peloton, Teladoc Health (TDOC), and Zoom. Add it all up â and when fundamentals and sentiment change simultaneously, we get a perfect storm for sudden stock price collapses. That means two things for investors. First, if for some reason you still own any of these stocks, you should sell them immediately to lock in any remaining gain, or at least a tax loss before the year is out. Then, you should consider taking the other side of the trade by buying long-dated and cheap put options on individual âwork-from-homeâ stocks, which increase in value the farther these stocks fall. Weâve been doing this for months now in [Trend Trader Pro](, racking up gains of 120%, 178%, and 237% (and counting). Our newest âwork-from-homeâ trade is off to a solid start, soaring 25% in 20 days. And itâs not too late to get positioned. In fact, the best thing about the latest recommendation is that it allows us to hit the âeasy buttonâ and bet against a basket of 40 stocks tethered to the âwork-from-homeâ trend. So donât delay! Click the box below to sign-up for a risk-free trial. This one trade alone could easily pay for the price of a subscription and then some! FOR TREND TRADER PRO READERS ONLY
[> Learn more]( Ahead of the tape, [Lou Basenese]
Lou Basenese
Founder & Chief Investment Strategist Copyright © 2021 Trend Trader Daily, All rights reserved. You signed up on
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