Daily Market News - 13th June 2022
Wasn’t It Obvious?
Sven and Peter are having a great wee time of it just now. But looking back. Wasn’t it obvious all this was coming?
I mean, when we REALLY dig into it all. How many warning signals did we need?
Bored Ape sold for $3.4m
A digital picture of an ape sold for THREE POINT FOUR MILLION F****G DOLLARS.
Let that sink in.
A digital picture of an ape sold for more than it costs to buy a plot of land, build a 6 bedroom home and buy a helicopter.
2. The Rise of The TikTok Investors
I feel sorry for the chap above.
Applying Warren Buffett principals to XRP was never going to work out well.
3. Money Printing On a Colossal Scale
History tells us printing money isn’t the answer.
Everyone got the stimmy checks, but what was the true cost?
We’re seeing it.
4. LUNA Protocol Armageddon
That’s right.
LUNA Terra had a Kill Switch which meant everything would be gone within 48hrs.
Prominent Financial media personalities knew this and still chose to pump it to the moon resulting in catastrophic losses for investors who bought at the top and didn’t know how to manage risk (or chose not to).
We chose to invest in assets like this. (Disclosure: I owned it multiple times and narrowly avoided the carnage)
Here’s Do Kwon talking about that very thing.
5. Covid-19
If you’re reading this. Congratulations. You survived an illness with a 99.997% survival rate that managed to shut down the entire global economy for 2yrs.
There was bound to be consequences to this, and the consequences are going to be felt for a while still.
6. Supply Chain Problems
China closed down, manufacturing halted, we were only allowed to work from home and goods couldn’t get from A to B.
Was this a net positive or a net negative for the economy?
7. Rising Inflation
The cost of everyday goods are going through the roof.
Wages aren’t rising at the same pace as inflation. This is a problem. A really big problem.
8. War in Ukraine
Aside from the absolute human tragedy, I think we all have our thoughts and prayers with the people of Ukraine.
The war started on the 24th Feb 2022 with sanctions imposed on the biggest exported of oil and gas in the world which has ramped up costs for everyone.
9. Record Stock Valuations
As a former narrow minded Technical Analyst, it was an incredibly humbling experience to get a crash course in Fundamentals.
My work pivoted around 6 months ago to stocks with reasonable P/E’s and positive earnings growth and on the short side to short stocks with massive valuations and negative earnings growth… in the years I’ve been at this game, I’ve never once considered valuations and fundamentals, but now they matter.
Wasn’t it obvious when we had companies with no profit and negative earnings growth worth $20B and an environment not seen since the .com bubble?
10. Imminent Recession
The Yield Curve, a reliable predictor of recession dipped below zero 3 months ago, you may have seen headlines with the words “Inverted Yield Curve”, it’s a big deal in the world of Finance.
We know a recession is coming, we know stocks don’t do well in recessions.
Our Time Stamped Market Calls