From Monday’s close to its low point on Tuesday, Bitcoin declined by over 13%. While a 13% decline in one day may seem enormous for almost any asset class, it’s not that out of the ordinary for Bitcoin traders and investors. As we graph below, Bitcoin has fallen by 13% or more intraday 59 times […]
Paul Volcker, Fed Chairman from 1979 to 1987, passed away in 2019. However, poignant words from his book Keeping At It, The Quest for Sound Money and Good Government may haunt the Fed today. In his book published in 2018, Paul Volcker offers the following advice. The real danger comes from encouraging or inadvertently tolerating […]
“Mooning“- When the value of an asset skyrockets, exceeding investors’ expectations. The phrase mooning, often used in crypto investor circles, is equally appropriate to describe Nvidia’s recent price action. The Bloomberg graph below shows that Nvidia’s market cap just eclipsed $2 trillion and surpassed Saudi Arabian oil giant Aramco. Consider that a little more than […]
It’s not just a handful of AI-related stocks that signal a speculative investment atmosphere. Many other stocks and markets are exhibiting similar behavior. For instance, Bitcoin and junk-rated corporate bonds show complacency and wild speculation. While both markets are inherently very different, traders and investors of bitcoin and junk bonds tend to behave similarly. The […]
Stock buyback authorization announcements are soaring this year. As shown in the graph on the left, the $207 billion in 2024 stock buyback announcements is already on par with the annual totals for 2020 and 2021 and only 29% behind the record-setting $293 billion last year. Mind you, there are still ten months to go […]
The implied volatility index (VIX) calculates the future volatility that option traders expect. The VIX tends to rise as stocks decline. At such times, investors are often more aggressive in hedging their stocks with options. Conversely, when markets are increasing, the demand for insurance tends to wane. Further, imparting downward pressure on the VIX, some […]
In a recent article, geologist Ted Cross of Novilabs eases investor concerns about the rapid depletion rate of shale oil wells. He claims investor fears are comparable to The “Red Queen Effect,” a concept from Alice in Wonderland: “It takes all the running you can do to keep in the same place.” Investors worry that […]
As we noted in our current Weekly Newsletter, Conference Board Scraps Its Recession Call, the Conference Board, publisher of the well-followed leading economic indicators (LEI), has rescinded its recession prediction. As we wrote: “According to the Conference Board, the reason for the retraction of the recession call was the improvement in underlying indicators.” While it’s […]
JP Morgan CEO Jamie Dimon sold $150 million of his JPM shares, marking the first time he has sold JPM shares. Jeff Bezos has sold 50 million shares of Amazon since the beginning of the month. Furthermore, Mark Zuckerberg, CEO of Meta, has sold $1 billion worth of stock this year. Because these vast sales […]