u/Trenbolone-Papi2 5.0 3 ideas

Adobe stock repeatedly sells off on news/announcements from AI competitor Anthropic (Claude). The competitive threat is ongoing and structural, implying continued downward pressure negating any "dip-buying" value thesis. The stock is in a downtrend with no visible support; buying the dip has been a losing strategy. Adobe executes a successful AI counter-strategy, market sentiment on AI competition shifts, or the stock becomes technically oversold for a sustained rebound.

Nike is cited as another example of an "under valued" stock that just keeps dropping in price. The market does not want these stocks, implying a value trap where low valuation does not lead to a rebound. Similar to ADBE, it represents a failing value investment where the thesis isn't playing out. Company fundamentals improve, brand strength reasserts itself, or the stock reaches a price that attracts strong institutional buying.

The author states they have "Transitioned mostly to ETF’s" and are "done trying to be smarter than the market." The implied trade idea is to abandon individual stock-picking (value investing) in favor of passive, broad-market index investing. ETFs are presented as the superior alternative to picking underperforming individual value stocks. Broad market decline, active management outperforms passive in certain regimes, or concentration in specific sectors.