Friday, Jun 10th 2022

May in review

Investor Update

“He that can have patience can have what he will." - Benjamin Franklin

In late May, our team published a memo that discussed what’s changed in the world, what we’re doing about it, and what we expect from here. We had an active start to May and plan to continue picking our spots as long-time watchlist names are finally approaching striking range. We believe we remain quite defensively positioned, and you can expect us to be patient yet tactical through this historic stretch.

Below we’ve detailed three main drivers for markets this month:

1. Speculation around peak inflation: The S&P 500 flirted with bear market territory in the middle of the month before a quick bounce fueled a strong rally into June. Many believed May marked peak inflation, but as shown by the CPI print (a commonly used measurement for inflation) this morning, inflationary pressures continued to accelerate higher. We expect high prices to persist for at least the next several quarters; however, our focus on investing in companies with robust cash flow remains unchanged. We’ll leave the speculation to others.

2. An infamous month for crypto: We witnessed the largest single-asset wealth destruction event in crypto history just weeks ago. Terra’s LUNA and stablecoin UST’s collapse sent shockwaves through the ecosystem. Long-term conviction in the asset class remains unchanged as institutional capital continues to flood into the space, legacy financial firms bolster their crypto offerings, and policymakers come across the aisle to work together. Fundamentals are in an exponential uptrend, but macro headwinds are owning the narrative - for now. You can read our crypto update here.

3. The consumer stays strong, with a bit of help: Americans have always had a knack for spending money, and in May, they turned out once again. Consumer spending rose 0.9% in May, supported by robust demand for travel and experiences. However, the household savings rate dropped to its lowest level since 2008 as consumers increased their reliance on credit cards and other forms of financing during the month. While fatigue from higher prices may be setting in, we will continue to closely monitor intra-quarter credit card/alternate data trends in the event these headwinds catalyze a potential deterioration in consumer balance sheets.

We will continue to provide updates throughout this correction, but please reach out to our team with any questions. Thank you as always for the trust in managing your capital. Have a great weekend!


Titan Investment Team

Revisit trade updates from May

Titan Trade Update: Shopping the sale rack

Titan Trade Update: Inside the collapse of UST and Terra (Luna)

Back to Research ↗

Learn with titan

Investment articles and resources

Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.

What Is Inflation? An Overview of Causes & Effects

What Is a Bull Market? Definition, Overview & Characteristics

What Is a Bear Market? Definition, Overview and Characteristics

How Long Will My Retirement Savings Last?

Let's Get Started

Ready to become a client?

Create an account with us in two minutes.

Or scan to get the app

We're building the best investment platform, ever

Titan Global Capital Management USA, Inc ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept our Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings are for illustrative purposes only and are not investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members FINRA/SIPC. For more information, see our disclosures. Contact: 508 LaGuardia Place NY, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice. Check the background of these firms on FINRA's BrokerCheck.

© Copyright 2022 Titan Global Capital Management, Inc. All Rights Reserved.