QOTD = Quote of the Day
This aged well. We are empathetic with the pain out there but, just as in the case with the anti-Vaxers and COVID deniers, stupidity has consequences.
Tesla (TSLA), the poster child of the latest leg of the bull market, which began in March 2020, is again testing what has been its unpenetrable support at the 200-day moving average. The stock has to hold here. Maybe, maybe not.
Tesla stock is now in a bear market, down 31 percent from its January 4th high.
Moreover, Elon’s crypto hobby isn’t faring much better.
The pain is palpable with many of my millennial bros.
The markets have once again become a social movement and everyone is now a genius.
I was lectured the other day by a friend, who said I knew nothing because I didn’t understand that millennials are taking their stimulus checks and buying Bitcoin. I tried to explain that was my point, then asked if he knew what a price-earnings ratio was or what is the stock market capitalization to GDP.
He dismissed me and said something to the effect, “Nope, doesn’t matter, you’re an idiot.” Credibility is all about timing, baby, but timing is impossible…
I then tried to explain to him that markets don’t reflect a true fundamental reality because the government, via the Fed, has basically nationalized most of them through endless bailouts creating an alternative reality. I conveyed that my investment philosophy is to buy low and sell high.
We then had a debate over Tesla, the stock that is minting money for him. So he says.
He couldn’t distinguish between Tesla the car (we agreed the best in the world), and Tesla the stock. – GMM, January 11, 2021