“Funding
secured”, two very expensive words for Elon Musk, which has resulted in a 20
Million dollar fine and a 3-year ban on being the chairman of Tesla. It might
be seen as relatively good news by many, because he can still stay on as CEO of
the company. His reference to a stock price of 420 was supposedly linked to the
code-term in cannabis culture for the consumption of weed.
Weed itself was also in the news this month, as it has properly replaced the
cryptocurrency hype. A cannabis company called Tilray has reached a peak
valuation of 25 billion dollars on 19 September, after it IPO`ed at 1.5 Billion
just two months prior. Hence, I would like to award Tilray with the “Bubble of
the month” award! - Phillip Fisher -
While many
parts of the world economy are struggling, with most stock markets not having
seen an all-time high in months and sometimes years, the U.S. stock markets are
moving in full force and continue to make all-time highs, despite the fact that
the Federal Reserve is now in “tightening mode” and interest rates are rising.
One can ask themselves; will the U.S. markets catch up to the downside, or will
other stock markets catch up to the upside?
"The stock market is filled with
individuals who know the price of everything,
but the value of nothing."
- Phillip Fisher -
As you would
probably expect, I fully believe that the U.S. will catch up with the rest of
the world. Rising interest rates, exuberant consumer confidence, skyrocketing
national debt, trade wars… the list of potential triggers for decline keeps on
going.
Looking at
the charts, the smart money flow index shows that “smart money” has stopped
participating in the U.S. markets since the decline in January of this year,
and hedgers now have a 65 Billion dollar short position against the major index
futures. Almost matching the January levels, and close to all-time highs. More
and more it seems to become a question of when, not if the U.S. markets will
see a big decline.
Enjoy the
ride, and don`t forget to stay positive after reading this newsletter, this too
shall pass!
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The information contained in this publication is not intended to constitute individual investment advice and is not designed to meet your personal financial situation. The opinions expressed in this publication is that of the publisher and is subject to change without notice. The information in this publication may become outdated and there is no obligation to update any such information.
The information contained in this publication is not intended to constitute individual investment advice and is not designed to meet your personal financial situation. The opinions expressed in this publication is that of the publisher and is subject to change without notice. The information in this publication may become outdated and there is no obligation to update any such information.