Tesla hits new peaks after today’s stock split. Must be time to sell the rip.
What could possibly go wrong
Masayoshi Son, the genius behind this, lost $70 billion in the dotcom crash. He only has $4 billion at risk this time.
$4bn of options. His exposure could be a lot lot more
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Exposure is estimated to be 50bn.
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Could he be rigging the market?
Could he bid enough to inflate the prices enough to pull in the suckers and the algorithms, and then close his positions quickly enough to make money?
Bit more info from Bloomberg on it -
This is reminiscent of joe Kennedy’s shoe shine boy trading stocks before the 1929 crash
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The stock market has been completely overvalued for well over 5 years now. It’s now rising as the whole worlds economy is collapsing. The smell of froth off it is unreal. It’s slightly false as it’s basically the 5 big tech companies making up half the market cap of even the S&P 500 which was designed to be a much broader based index. But even the 5 of them are completely overpriced. There’s a reckoning coming and it won’t be pretty. But as Keynes said “the market can stay irrational longer than you can stay solvent”
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There is some substance to their valuation as its largely due to their monopolistic power and they are not quite as bubbly as 20 years ago as this time they generate profit
Somewhat agree. Amazons PE ratio is 126. Now that’s a very simplistic metric to look at Amazon through as there is always the option for them to increase margins slightly and Jack earnings massively, but still that’s a mental ratio for a well established company who cannot possibly keep growing as they are sustainably.
Sure, there is definitely an overreaction to the value of the perceived winners of ‘the new normal’ with Tesla and Amazon being valued for market dominance that previously felt 10 years away. Apple is a bit more difficult to explain. People seem to buy that they’ll successfully transition to web services and maintain the cultish brand loyalty
Still a return of close to 1% though - with the knowledge that if growth slowed they’d prob increase earnings.
Not saying it’s right but in a low interest world 
Any sector worth investing in at all at present?
I’d imagine the pull back will be broad based. Anything with a high PE will be in trouble. But we could keep going up for ages more. Money is cheap and there’s no value in anything at the minute so people have to stay long equities
Pubs
I know of one prominent publican who has bought a couple of pubs in past few weeks.
Neachtains (Louis Fitz),The Dew Drew Drop (GBB) The Hole in The Wall (Carrolls) were gobbled up in Galway. Word is a big Irish UK crowd are after Richardsons(Not Weatherspoons).
Whats the angle here?