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Zeitgeist Unchanged
There were signs early Friday that the mood underlying Thursday's session might be poised to continue.
Treasurys extended gains after the previous session's sharp bull-flattening, suggesting risk-aversion and, perhaps, the beginnings of forced buying into the rally. Five-year yields hit a new record low and 30-year yields were richer by 5bps to the lowest since May 15. 10-year yields were below 0.60%.
I talked a bit on Thursday about the prospects of a "growth scare" dynamic taking hold as re-
We cant live with out iphones, youtube and Facebook? What a rotten people we have become.
I’m starting to think an entrenched “value rotation” has joined other unicorns like the Phillips curve or inflation in the land of legends that existed before Central Banks gave us administered markets. Why invest your hard earned cash in companies that have low PEG ratios o P/Es in the low double digits when you can buy Tesla and see your wealth sky rocket? Some day the spaceship might run out of fuel, but not today…
I cannot invest in the tech utilities because they are so overbought. I missed my chance when they were new and relatively cheap.
Yep, spot on.
Man of Lourdes, the beauty is you don’t have to. Fund managers do or they will get fired. You can buy great companies at good prices and wait for the market to recognize it. Their are many. And cash has option value so when the “pros” panic sell great companies you can buy. You are not beholden to VaR, closet indexing, daily PnL, etc. Time arbitrage is the biggest advantage the individual investor has imo.
Be smart, invest well. There is a lot of opportunity out there, just use your brain and be patient.