Nvidia and Telsa trade on hopes and expectations, FOMO and huge PE multiples. They are very different investment propositions but reflect the bubble market. Maybe it’s time to revert to dull, boring, predictable returns in fixed income secured by real assets?
The SpaceX Starship will be a wonderous thing, and Tesla is a great car company, but does Elon Musk have the time to keep them on track while trying to figure out what to do with his Twitter unwanted stepchild? He’ll come up with something nifty, like X Corp, to fuddle it through..
Consumption and a cost-of-living crisis are upon us, but markets blithely assume it’s all upside to 2023. The risk is not a massive crash, but growing realisation the global economy has peaked, needs a period of normalisation and a reset after the madness of the last decade.
The failure of Virgin Orbit to achieve the first successful satellite launch from the UK is disappointing. It puts the opportunities for space business under the spotlight. There is money to be made, but how, and by whom?
Never hold a referendum unless you can be sure of the result. Musk has broken the Cameron rule, and leaves himself exposed and looking foolish. It may mean we’ve passed Peak Musk, and the bubble around his extraordinary assent has burst. And, as Nurses stage a second strike day, some thoughts from an NHS A&E department.
Twitter looks to be the most chaotic acquisition of all time, but underneath the madness there may be considerable guile, logic and a long term plan. Experience teaches not to underestimate Musk, but trust him considerably less far than he could be thrown! It might just be brilliant.
“Leverage, Liquidity and Volatility upturn markets, triggered by policy mistakes, ignorance, hubris or plain getting it wrong. These are dangerous times as multiple issues threaten confusion – so some simple market mantras might help!”
Despite US inflation hitting a 40 year high, US growth stocks rallied – reflecting the belief inflation and recession will be short and sharp. It’s a fair bet – but go back into growth stocks eyes-wide-open, and don’t be fooled by the most dangerous myth surrounding Tech – Personalities!
Would a Tesla survive a Kamikaze Pigeon attack? Tesla remains the tech stock that’s defying the ongoing valuations reality. Why? Because Musk still controls the narrative – and that may be about to change.
What nefarious plan does Musk have in mind for Twitter? How does it relate to his empire of cars, tunnels, satellites, rockets and neural-links? How real is it and how much is hype. What is Musk playing at? Your guess is as good as mine.
