Just wow. The last two articles on this were amazing in the reminders to myself that 1999 really wasn’t that long ago. Then I saw these brilliant souls teaching us all there is to know about investing:
A sneak peek of one of our top secret trading strategies. h/t @ryanfeller_ pic.twitter.com/V2PFee7vu4— TikTok Investors (@TikTokInvestors) January 17, 2021
But wait, there’s more!
Young legend in the making. h/t @yuppiecapital pic.twitter.com/9fU9jFuAyC— TikTok Investors (@TikTokInvestors) January 15, 2021
Personally, God Bless them, I hope they make a fortune. But the peripheral indications are this is a much larger problem than FinTok videos. For example, let’s check out this awesome company:
But hey, they are profitable right? That has to be the reason the stock went up, right?
Just like a BioTech company.
But let’s check out the action of another legendary bubblelicious company, by no fault of their own, being blamed on this Tweet by Bubble Blower Elon Musk:
So what did the Hoodies and FinTok types do?
Yup, they joined the social media site, Signal.
Just kidding they took a penny stock and went bat shit crazy:
This story from YahooFinance just hilariously sums it all up with the “Captain Obvious” headline of 2021 thus far:
Elon Musk tweet sends this stock up 1,500% in 24 hours — may be a sign of market bubble
There is more however.
Like this great chart from Lance Roberts he tweeted from ChartsandMarkets.com:
A sign or a warning?
Try this one from one of my favorite follows, Sentiment Trader, also on Twitter:
We didn’t think traders could get any more speculative than they were at the end of August.— SentimenTrader (@sentimentrader) January 16, 2021
We were wrong.
For the first time, small trader call buying (adjusted for equivalent shares) exceeded 9% of total NYSE volume last week. pic.twitter.com/WcyRPHq0dV
Thank God President Biden will save us!
Lastly, way back on January 5th, legendary investor Jeremy Grantham put out his warning for all to see:
Waiting for the Last Dance
From the introduction:
These great bubbles are where fortunes are made and lost – and where investors truly prove their mettle. For positioning a portfolio to avoid the worst pain of a major bubble breaking is likely the most difficult part. Every career incentive in the industry and every fault of individual human psychology will work toward sucking investors in.
But this bubble will burst in due time, no matter how hard the Fed tries to support it, with consequent damaging effects on the economy and on portfolios. Make no mistake – for the majority of investors today, this could very well be the most important event of your investing lives. Speaking as an old student and historian of markets, it is intellectually exciting and terrifying at the same time. It is a privilege to ride through a market like this one more time.
There is no reason to ponder what will burst this bubble, the answer is right in front of everyone’s face. A guest on CNBC’s TheExchange on January 5th, just after 1 p.m. ET, spoke about it and stated he was planning for a 30 day national emergency shutdown to contain the virus and re-secure the nation, even though there was staunch denials from the Bidenista’s incoming regime. Yet how would a New York hedge fund manager not know this without some inside information from one of his cocktail party friends from within?
The truth is obvious; the virus is out of control as feared, the vaccines thus far not as effective as promoted if one is to believe the news published internationally, and China is now having to acknowledge a major outbreak which is spiraling out of control from Wuhan, to Beijing, and throughout the nation. Add in this little gem from Russia on Friday:
And everything starts to make sense. An economic collapse and ‘reset’ caused not by a virus, but decades of mismanagement and financial rape now has an excuse to redesign itself. More on that later, but if my readers wish to believe we are not in one of the largest financial asset and speculative bubbles in history, the you my friends are a fool.