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Last week we were reminded that ‘stonks’ go down.
In last week’s Momentum Monday post I wrote:
Let’s begin with a reminder that it is frothy out there. When I say frothy, I mean that even I am getting used to stocks making 50 percent moves in a week. It feels like we are getting a bubble inside a recession.
Robinhood traders are having fun betting on airlines and dunking on Warren Buffett…while the dunking is what the media is focused on the BIG picture is how easy it is with Robinhood to be a contrarian to Warren Buffett and Wall Street. From Robinhood to European neobank and brokerage products, people can express themselves even with $100 pounds as contrarian to Warren Buffett in real time.
All that said, I DO NOT think Robinhood traders are driving the market. From watching the price action I believe it is the sloppy government buying of stocks to get prices to where they want to keep the narrative.
This week the Robinhood narrative picked up even more steam. It is a stupid steam. A lazy media pile on.
I do like Alex Danco’s post which introduces the idea that we are witnessing a ‘third’ type of financial bubble. The payday:
There is a third kind of bubble, and it’s happening spectacularly right now. If the first kind of bubble is “everyone thinks the future will be the same”, and the second kind is “everyone thinks the future will be different”, the third kind is “everyone thinks the future doesn’t matter.”
Here is this week’s Momentum Monday. As usual, Ivanhoff and I tour the globe to find the momentum and trends.
Have a great week.
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