I still think that the stimulus passage was already cooked into the current pricing and the bigger issue we see is the run-up on safe yields from treasuries.
Indices are dropping because TNX is rocketing up.
Valuation theory 101. All a stock is worth is its future cash flows discounted to present value. The rate for discounting is set to a 'risk-free rate', which is often set to TNX for convenience. When TNX goes up, valuations go down. It is an exponential relationship, which is why a small move in TNX can crush stocks by a lot because people can park money here risk free.
TNX could still go up to around 2.00, so there is still a lot more room to drop for many stocks based on current pricing.
It's not really a 'dip' if the fundamental valuation for equities has changed.
I still expect a drop this week, although we may have a large 1-2 green days in the mix. [Reply]
Any doubters changed their tunes on GME yet? As a stock, not a company. Two straight weeks of growth now despite the rest of the market taking a shit. [Reply]
A slate of high-profile pro athletes including Patrick Mahomes and Naomi Osaka have joined with a tech-focused banker to form a new special purpose acquisition company seeking a business in health and wellness, entertainment or consumer-facing technology.
The SPAC—Disruptive Acquisition Corp. I—filed for a $250 million IPO with the Securities and Exchange Commission this morning. The SPAC founder is Alexander Davis, the owner of Disruptive Technology Advisors, a bank that works with tech companies in transactions such as providing liquidity for shares in privately owned companies. [Reply]
For my Twatter group...who are some of your favorite people to follow for investing tips and advice? I feel like there are ALOT of BS accounts out there that are riding the coat tails of GME and have built their following off of just that...I am looking for people that are established and know their shit. [Reply]
