pull down to refresh

0 sats \ 0 replies \ @Bell_curve OP 13 Jul \ parent \ on: 50/30/10/10 allocation Stacker_Stocks

🧠 What’s a NAV Discount?

A NAV discount happens when a fund (like MSTR or a closed-end ETF) trades below the value of its underlying assets. For example, if MSTR’s Bitcoin holdings are worth $100 per share but the stock trades at $80, it’s at a 20% NAV discount. This can signal undervaluation—or market skepticism.

🔁 Action Triggers by Scenario

Bullish Market
  • BTC Active trims begin at predefined profit tiers (e.g., +100%, +200%)
  • STRK may convert into MSTR if MSTR trades at a premium (e.g., 2x NAV)
  • Other Bucket rotates into high-beta sectors like tech or AI
  • Unassigned Reserve can be deployed into momentum plays
Bearish Market
  • BTC Active rotation pauses or shifts into ultra-short bonds
  • STRD may be redeemed to replenish Cash Buffer
  • Other Bucket tilts toward gold, TIPS, or volatility hedges
  • MSTR may be trimmed if NAV discount widens beyond threshold (e.g., −30%)
Correction Phase
  • BTC Active trims selectively if prior gains exist
  • MSTR may be re-entered if NAV discount exceeds 20%
  • Other Bucket rotates into low-volatility ETFs or short-duration bonds
  • Unassigned Reserve used for opportunistic entries into oversold assets
write
preview