Frogs in boiling water. That’s how Seth Klarman describes investors today. Conditioned to not feel fear. Just like with The Money GPS, he blames the Fed directly. The trouble here is that the Fed is actually unable to stop a crisis, would never stop a crisis, and in fact creates a crisis in the first place. But they have been conditioned to believe otherwise so that’s the consensus. The truth doesn’t matter to most. Only herd mentality.
Baupost’s Seth Klarman compares investors to ‘frogs in boiling water’ | Financial Times
Seth Klarman, the founder of hedge fund Baupost Group, has told clients central bank policies and government stimulus have convinced investors that risk “has simply vanished”, leaving the market unable to fulfil its role as a price discovery mechanism.
These Are the Most Expensive Stocks in a Market Full of Optimists – Bloomberg
SPAC Rush Leads Active ETF to Go All In on Blank-Check Companies
The world’s first actively managed exchange-traded fund that invests in blank-check companies is doubling down on the red-hot SPAC market at the expense of its other strategy, merger arbitrage. The Accelerate Arbitrage Fund was launched in April by Julian Klymochko, the founder and chief executive of Calgary-based Accelerate Financial Technologies.
Hedge Funds Beef Up Tech Holdings Before Apple, Amazon Earnings – Bloomberg
Rates Traders Are Counting on Powell to Quell Talk of 2021 Taper – Bloomberg
Census Estimates Show Population Decline in 16 States | The Pew Charitable Trusts
Low birth rates, COVID-19 deaths and immigration cutbacks contributed.
People in Five States Say Get Me Outta Here
Greenwich Homes Are in Short Supply, So Buyers Are Bidding Up – Bloomberg
Pete Buttigieg Puts Gas Tax Hike “On the Table” During Confirmation Hearing | Americans for Tax Reform
Only two days in office and the Biden administration is already considering breaking President Biden’s campaign promise that “anyone making less than $400,000 a year won’t pay a penny more” in taxes. During his Senate confirmation hearing for Transportation Secretary, Former Mayor Pete Buttigieg told members of the Commerce, Science and Transportation Committee that a gas tax increase is “on the table” as a means to pay for infrastructure spending. When asked directly by Sen.
Seth Klarman describes the current market. More money moving into the stock market. Value stocks have seen more inflows and tech stocks and other growth stocks are also performing well. More money is being pumped in from all sides, creating a massive bull market that apparently will never end as we are on a permanently high plateau. Stimulus driving markets higher.
— APPENDICES —
A promising sign of a bounce back in the pandemic-ravaged economy has stalled: Fewer borrowers are resuming mortgage payments. The proportion of homeowners postponing mortgage payments had been falling steadily from June to November, an indication that people were returning to work and the economy was beginning to recover.
— The Money GPS: Investing legend says bad things are coming because paper printing does not create an economy. (Instagram Jan 22, 2021)
— The Money GPS: The purpose of big tech is to absorb your data. Not to provide a service and later take advantage of you. Look up In Q Tel. (Instagram Jan 21, 2021)
— The Money GPS: To get where you want to be, you have to know where you are now. (Instagram Jan 4, 2021)
— The Money GPS: Master one thing before moving on. Know where you are in the cycle. (Instagram Dec 15, 2020)
— The Money GPS: Be a better investor | How to be a better investor. Window shop! (Instagram Dec 12, 2020)
— FOOTNOTES —
Wake up to the suits and ties. They’re all lying to you. None are your friends. None wish to help you. Wolves in sheep clothing. More distractions than ever before. The magician always makes a spectacle to hide the trick.
Powell was just asked about GameStop stock. Said he doesn’t want to comment. Yea… We know you don’t want to comment on it because you’ve created this madness. David Liesman asked a follow up, specifically asked him to talk about super low rates creating a bubble #gamestop pic.twitter.com/JF0mPhS9PY
Powell: “The real unemployment rate is close to 10% when you include those who have left the labor force” Money printing does not impact asset prices. Stocks and low interest rates not very correlated #gamestop pic.twitter.com/qruhSmyBZL
We live in a fantasy land. More money flowing in than ever before, IPO frenzy, housing skyrocketing. Euphoria never end well. The higher it goes the worse it will be. Slow and steady growth is much safer. #money #investments #debt
IF THEY WILL FIGHT OVER PLAYSTATION…What would they do for food? #ps5 #PlayStation5 #playstation #ps5fight #walmart pic.twitter.com/hbimVKzeta
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The Money GPS is the most active, most informative channel in the financial world. Day after day, breaking down the data and making it easy to understand. This channel is not here to help build a portfolio, give stock picks, or financial advice. It’s simply data that is generally not found through conventional means.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.