As so-called ‘FANG’ stocks (Facebook, Amazon, Netflix, and Google) keep making new highs, predictably some say we’re in a tech bubble: Are Amazon’s Shareholders Suckers? The Silicon Valley Bubble TECH IN THE TRUMP ERA: IS THE SILICON VALLEY BUBBLE ABOUT TO POP? Is Silicon Valley in a bubble? It’s complicated Silicon Valley Sees The Pavement… Continue reading Not Worried About Tech Bubble (and how HBD can be used to beat the market)
Pinterest Raises $150M at $12 billion valuation That so obvious, inevitable web 2.0 ‘bubble’ just refuses to burst. Valuations refuse to fall despite so many pundits predicting they would. The past seven or so years, every single thing that the media called a bubble, they got wrong. That includes the post-2008 bull market, Facebook stock,… Continue reading HBD-as-Destiny Thesis (part 5 of predicting series)
Why giants thrive The power of technology, globalisation and regulation This is why a simple investing strategy that goes ‘long’ equal weight the three biggest, fastest growing, and most successful tech companies (AMZN FB and GOOG) has done so well. Is past performance indicative of future results? No, but as far as strategies go, it’s… Continue reading Amazon, Google, and Facebook: Bigger is Better
This is the penultimate installment of the post-2008 wealth creation guide. In part three, I discussed shorting inverse leveraged funds like SPXU and SPXS, which are 3x inverse versions of the S&P 500. As of 7/20/2016, SPXU is trading at 23.50. Shorting $10,000 worth would require shorting 425 shares. If it drops 20% to $18.8,… Continue reading Post-2008 Wealth Creation: A Guide, Part 4
Entrepreneurship is too hard, America’s ‘pioneer spirit’ is gone, and the news is pretty much a waste of time. Blogging, writing, etc. also mostly a waste of time and usually doesn’t make money. In our post-2008 winner-take-all, bigger-is-better economy and society, instead of trying to compete directly with the big and rich, why not piggyback… Continue reading Post-2008 Wealth Creation: A Guide, Part 1
Two contrasting viewpoints: Pessimistic: The Truly New Year Optimistic: Financial Fridays: The Stock Market is Bullshit New inventions and technologies would outpace the demand for those commodities so that as we needed their functionality more, the prices would fall. Think about computers: your price per speed and functionality in your computer has gone down every… Continue reading Better or Worse?
From The Reformed Broker, There is a limit A lot of people are struggling in this market. Here is the deal. I’m going to divulge research that investment firms normally pay hundreds of thousands of dollars for, for free. It’s a very simple way to not lose your shirt in this schizophrenic, mean-reverting market. First,… Continue reading The New Investing Landscape
Back in August and September during the stock market plunge, I recommended going long here and again here. Sure enough, stocks have surged since then, with the S&P 500 up about 9% since my reiteration to buy the dip: The portfolio I ‘manage’ is up 20% this year, vs. 2% for the S&P 500: By… Continue reading Stock Market Rebounds
As everyone is freaking out about stocks falling, a buying opportunity has presented itself: The pattern now is reminiscent of the selling in late 2011 which, in retrospect, was a good buying opportunity as the market proceeded to rally another 70%. The big concern right now is over supposed economic weakness in China. But aside… Continue reading Buy The Dip
Tesla stock (TSLA) surged today (and in the after hours) on an announcement of a mystery product line, as tweeted by CEO Elon Musk: Major new Tesla product line — not a car — will be unveiled at our Hawthorne Design Studio on Thurs 8pm, April 30 — Elon Musk (@elonmusk) March 30, 2015 Due… Continue reading Tesla’s Big Surprise. Don’t Bet Against High-IQ.