bloodbath

In partnership with

Last night was rough and I want to address it directly.

The S&P 500 and Nasdaq both fell close to 2%. Gold dropped to $4,500. Bitcoin barely held on at $70k. Across the board, risk assets took a hit.

Why?

The Fed held rates on Wed and signalled that cuts for 2026 may not materialise at all. When that happens, here is what follows. Growth slows because borrowing stays expensive. Gold becomes less attractive because investors can earn decent yield just sitting in bonds. The US 20-year Treasury yield spiked to 4.9% in just the last 5 hours. That is a significant move. Money was leaving risk assets fast and moving into the safety of yield.

This is the market pricing in a new reality. Higher for longer rates. A war that is not ending. Inflation that is not cooling fast enough. And a Fed that is stuck between a rock and a hard place.

So what should you do?

Honestly? Not much. And that is the point.

Stay calm. Do not panic sell quality positions. Do not chase anything that is spiking on fear.

What you should be doing right now is building your watch list. The great businesses you have always wanted to own but found too expensive. Write them down. Know the prices at which they become attractive to you.

And raise some cash if you have not already. Not all of it. But enough to have firepower when the real opportunity presents itself.

As I have said before, the investor who is prepared before the dip is the one who actually profits from it. The one who panics during the dip is the one who locks in losses.

We are not there yet. But we may be getting closer. And when it comes, you want to be ready.

Stay calm. Stay prepared. Stay positioned.

Meanwhile, check this out! its free!

1,000+ Proven ChatGPT Prompts That Help You Work 10X Faster

ChatGPT is insanely powerful.

But most people waste 90% of its potential by using it like Google.

These 1,000+ proven ChatGPT prompts fix that and help you work 10X faster.

Sign up for Superhuman AI and get:

• 1,000+ ready-to-use prompts to solve problems in minutes instead of hours—tested & used by 1M+ professionals

• Superhuman AI newsletter (3 min daily) so you keep learning new AI tools & tutorials to stay ahead in your career—the prompts are just the beginning

Claim your free prompts

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.