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Albert Edwards Weighs In On Stock Mania, Talks Cats In Hell
Earlier this week, I had a little fun at the expense of the latest musings from Jeremy Grantham, who's convinced US equities are in the midst of a historic bubble that's doomed to burst in spectacular fashion.
I'm never sure what kind of reception those types of pieces will get.
While readers with a sense of humor enjoy the overt sarcasm (some revel in it), others invariably take umbrage when I poke fun at "brand names" and "legends" of the business.
Read more: Jeremy Grantham Regales Youngin
What is preventing the Fed from implementing yield curve control to avoid the necessity of raising rates?
Good point, I don’t think anything will prevent the Fed from implementing YCC, to me it’s more a question of whether they’ll do that proactively trying to get ahead of major market indigestion or whether YCC arrives as a reaction to a mini (or not so mini) burst of the bubble.
Obviously, SocGen does not hire SocPuppets. Edwards’s analysis confirms my views, which are grounded in unverifiable hunch. It’s been a nice little ride since April, but at age 77 I’ll feel better trimming equities soon. Before Jan 20…
TSLA stock and half the SPAC mergers are all bubbles, but it is hard to see what can pop it.
Perhaps VW or Apple or another auto manufacturer putting up some real competition in the EV space would do it. A general and widespread stock market sell-off would also do it. It’s hard to see either of those two happening anytime soon.
Like Heisenberg said above, timing is everything and if you can’t time it you’ve got nothing.
One of the key advantages that Musk has is the ability to raise capital. He can sell 5 billion of stock with the snap of his fingers and it doesn’t budge the stock price at all.
Michael Burry did have the brilliant insight to see how a thing must fail.
Incidentally, Burry is now short TSLA.
Burry also buys into conspiracy theories like that yesterday was a false flag Antifa operation. He’s a savant of some sort, but he’s also not quite right in the head about plenty.
What is the BOA Michael Hartnett bull bear at? Are you approaching 7 or 8 yet or already getting ahead of that?
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You are the only market expert to whom I pay real money to listen to what you have to say. One reason for this is that you understand and explain what is actually going on in the huge portion of the market “iceberg” that lives under the waterline better than any one else with whom I am familiar. The other reason is that you have access to a large group of leading market experts of all different stripes and regularly pass their observations and wisdom onto us, along with the synthesis of their ideas otherwise not included in the notes of others in the blogsphere. Synthesis is is a form of logical thinking foreign to most ordinary humans and I am happy to pay for access to your extraordinary skill in that arena. Thank you for sharing. Stay safe in 2021 and keep up the good work. I have a feeling this will be a wild ride. My primary advisor has a tool that stress tests each of my holdings for four scenarios I select. The results from a test run for me just after the election showed me I ‘m doing OK but to weather the ride for this year I may have a fair bit tweaking to do. Your commentaries will be an important input to this process.
Danger is TSLA. IV percentile @ 85% and $800B cap vs IV percentile of 37% of AAPL’s $2200B cap.
Means TSLA trades LARGE in market cap swing vs S&P biggest AAPL, AMZN (32% IV).