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📉 Market Recap

Last night’s session looked dramatic at first, sliding roughly ~100 points, only to rally and finish almost back where it started. A bit like the market having a tantrum, throwing a fit, and then calming down. This kind of volatility reminds us of the warning from Warren Buffett: “Be fearful when others are greedy and greedy when others are fearful.” Even if Buffett is stepping back this year, his wisdom is still very much alive.

We’re in a phase of heightened anxiety: elevated inflation worries, central bank policy jitters, and a degree of investor fatigue. The result? What I’m calling The Market Tantrum.

What does that mean for us? It means fear is still abound. And if there’s more fear to be had. Well, that’s precisely where opportunities can hide.

🔍 Key Movers: STRC & SATA (plus long-term conviction on BTC)

I’m doubling down on two yield-driven plays and reinforcing my long-horizon view on crypto.

1) STRC — High-Yield Preferred from Strategy Inc

STRC is a perpetual preferred issue offering a ~10.50% annual dividend, payable monthly in cash.
What makes it interesting:

• Strategy Inc has built a treasury business focused on bitcoin exposure (via its parent common and other securities).

• The preferred is structured to adjust its dividend rate monthly to keep the price close to par ($100).

• The yield is attractive in a low-yield environment (if you’re comfortable with the underlying risk).

Risks to note:

• It’s perpetual (no maturity date) so you’re relying on the firm’s long-term capital structure.

• The dividend, while high, depends on the company’s ability to handle its obligations. Some analysts have flagged questions around its liquidity and cash-flow relative to its bitcoin holdings.

• With the market in a fearful mood, preferreds and high-yield instruments can amplify volatility.

2) SATA — Preferred Series A from Strive Inc

SATA is newly listed preferred stock (Variable Rate Series A) from Strive, trading under “SATA” on Nasdaq.
Highlights:

• IPO priced at $80/share, then trading around $90-96 recently.

• Variable rate, perpetual structure, meaning similar playbook in terms of yield + structure.

• As a newer issue, less track record — so while the yield potential is there, so is execution/regulatory risk.

3) Bitcoin (BTC) — Long-Term Conviction

By now you know I’m onboard the long-term crypto train. Current price sits at around ~$95,000.

Why I remain committed:

• Digital scarcity + institutional adoption continue to build.

• While short-term swings are dramatic (like the tantrum in equities), the long horizon matters.

• I’m not trying to time the top or the bottom, I’m placing a conviction bet on structurally transformational tech.

• The current fear cycle in the market might give us entry points.

🎯 Sector Spotlight: Yield + Fear = Opportunity

What’s the broader lesson here? We’re seeing a classic combo: elevated fear + high yields. That’s a double-edged sword. It brings risk, but also opportunity.

– Fear is high → investors are cautious, valuations are under pressure.
– Yields in safer/traditional assets are still low → some are reaching for yield elsewhere (preferreds, crypto yield plays).
– If you believe we’re still early in this fear cycle, there’s room to build positions incrementally.

In such times, discipline matters:

• Know the structure of what you’re buying (preferred vs common stock vs crypto).

• Understand the underlying risk (company fundamentals + macro backdrop).

• Use this environment to accumulate — not chase.

For STRC and SATA, I’m using them as yield anchors. Meanwhile, BTC is the long-horizon growth engine of my portfolio.

📝 Investment Tip

Build, don’t gamble. In volatile environments like this:

• Position size matters: don’t bet the farm on one name.

• Use layering: buy in tranches, so you smooth out timing risk.

• Keep your conviction bucket separate from your speculation bucket. For me: STRC + SATA = conviction for yield. BTC = conviction for growth.

Also: stay ready for the unexpected. The market tantrum may persist, even maybe intensify. But if you’ve built positions with clarity then you’re not reacting, you’re acting.

✅ Takeaway

The market may be behaving like a toddler throwing a tantrum. Instead of hiding, I’m leaning in. I’m using yield-driven preferreds (STRC, SATA) knowing the risks, and anchoring my long-term growth in Bitcoin. Fear is still abundant, and that’s exactly where opportunities live. The key is discipline + patience.

If you’d like to go deeper: my recent webinars cover STRC and SATA in detail, check them out in the SMG member area. Link here.

💥 Limited-Time Offer

Want more real-time insights, model portfolios, and exclusive webinars? Join SMG now and grab 25% off your subscription — offer valid for a limited time only. Let’s get you ready for the next leg of this market ride.

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Happy Hunting!

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.