ARE WE IN A TULIP BULB MANIA?
Extract from model x portfolio report 11 February 2021.
Good afternoon, we have remained largely out of the market for an extended period, after being whipped about a little during exaggerated volatility.
We have just sat on our hands really, as what is going on in markets generally, is perhaps even more extreme that the great Tulip Bulb disaster of the Netherlands a long time ago. What happened then, was that a whole society became obsessed with getting rich quickly and easily by speculating.
IS THIS 1927-1929 AGAIN?
January 12, 2021
Good morning, and we just closed an incredible trade in Tesla.
At the time, it felt we were buying late near the top, but it worked out as one of the best trades ever. So, we know respecting price action, even when disbelieving the levels achieved, can be highly profitable.
That said, the price action now, for Tesla, and the Tech sector as a whole, is heavier than the broad market. Tech needs to stabilise here, or risk becoming a downward snowball, quickly impacting other sectors and particularly the Australian market and extremely so in stocks like Afterpay that have never made a profit.
US URGES CHINA SHIFT AWAY FROM EXPORTS
17 March 2021