People still have no fears. Buying dips mentality is still there. With interest rate still very low, traders do not want to hold cash. But those turned green are still the popular tech names. Same market again and again.
Still not a lot of fears. People still buying on dips....
The most scary time was the 2008 Financial Crises. All markets dropping every day. And crude oil at > $100.
No one wants to keep all the cash in the bank and earning pretty much nothing. It is actually losing money with the high inflation.
Funds are not paid by doing nothing.
But as long as Apple, Google, MSFT and TSLA still up in the sky, S&P and NASDAQ can still hold up well. We all know TSLA and Cryptos are bubbles. But....
Now look at ARKK NAV. It is $108.84 vs close price of $85.58. That is 21% discount off the NAV. Something is terribly wrong here. Either ARKK's NAV valuation is completely off, or market is heavily against ARK.
Some hedge fund can accumulate MM shares of ARKK. Then demand to redeem cash...
This seems like a wholesale "risk off" trades. Crypto, tech, meme, SPACs and some IPOs. Wonder if traders load up tech stocks ahead of the earnings game. Or money is tight.
Cathie Wood is going to implode. A lot of the monkeys under her tree will flee. Her video pumping will fail to support the stock prices.
ARKK is not a closed end fund. It is an ETF. Some shareholder can redeem for cash, at NAV? Then Cathie has to sell her winners (any) like TSLA. She does...
Also, this is exactly what Larry Summer has been saying. Fed is behind the curve; Inflation is never a transitory; The longer Fed waits, the bigger bubble those asset prices are going to be; Then more pains we'll endure to shrink the bubbles.
This is exactly what happening now. Maybe some...
What is the impact of Fed raising short-term interest rate? Very limited. Large businesses get a lot of cash in the bank. Small businesses do not want to borrow money and expand. Common households do not want to borrow money since they get money in the bank too. The only people still borrow...
For anyone who follows the Fed, Jay Powell was playing Biden. He used transitory all the time prior to re-nomination from Biden. After his confirmation. Powell changed his tone completely. His re-nomination was a turning point. A lot of smart political moves by Powell and Biden etc...
It...
Fed made huge mistake with the lax monetary policy and the goal of FULL employment. But this is not the classic scenario that Fed can just raise the interest rate to TAME the inflation.
Taming inflation by raising interest rate only works if the root of inflation is from an over-heating...
This market is clearly a trend following market. When something happens, it is a mud slide or avalanche. Nothing can stand in the way of this.
Cathie Wood? Bitcoin? Who knows what is next. Buckle up and ready for the wild ride again.
Those were the past. Not now. I know some business executives. They say it is hard to send any money out of China now. There may be still some "dark" way. But nothing comes easy now.
No. The reason China real estate had been this strong is the concept that with the country with the world's highest population, housing demand is unsatiable. Housing price will continue to go up. Also, China has huge inflation problem and bank deposit is a losing cause. Stock market can't be...