There’s little in economic news today. And certainly, in the “news flow” only a few things project forward as interesting and worthy of your attention.
Which leaves time to be entertained by the Court System and high-profile cases. Like Business Insider’s coverage in Everything You Need to Know About Musk’s ‘Funding-Secured’ Trial.
Reading through the case, an interesting thought occurred: Is this case an example of a whole country becoming “Lazy Investors?”
The high-level view is that a group of investors has sued Elon Musk for claiming “Funding-Secured” for the sale of Tesla. When the deal didn’t happen, the investors got angry and “lawyered up.” It goes to Court, and we all watch.
However, as a compulsive gambler myself – who has learned Day Trading can be done anywhere, has lower Covid risks, and no floor shows compared with Las Vegas – it seems to me the folks in court may be “lazy.” Poor losers.
To us they’re very much like Crypto investors. Everyone wants something for nothing these days. Because we living in a world where “the money” – not the utility or the core values matter. No sir: it’s all about “the dough” and in the spirit of both Woke and the “Full Employment for Lawyers Act” here come the lawsuits.
It’s a gross oversimplification in my head today: But “piling on to a hot stock” is not “investing.” See, there is an “art” to actual investing that goes way beyond the “pile on” to this week’s hot stock on the story of a takeover to come.
Tesla overvalued? Is Tesla a good car? Yes, but while it works in urban areas, a Tesla can’t drive east to west across Texas. There’d have to be a long charging stop along the way, see? In an ICE or Hybrid, it’s almost a non-stop trip with one or two 5-minute fill-ups and kidney unwinders.
I’m pointing out (and this is very anti-woke, pro-science of me) that America’s fascination (*if not predilection) is the quest for Silver Bullets, sure things, free money for all, and no due diligence required. Dream the f**k on.
Work still matters.
Truth About “Investing”
There is risk. Elon Musk, very likely excited as a proud pappa of his first major auto company may have very likely overstated financial commitments when he said “funding secured” on one day only to see it evaporate, shortly thereafter.
Shit happens in business. It’s the way it works.
People who “piled on” buying Tesla stock were l0oking for free money. Sorry, sport. Game doesn’t work that way. As we remind everyone through various website disclaimers, we do not offer advice – only a unique perspective and some odd approaches to research. What our readers actually DO with our advice is 100% up to them.
Musk is in a somewhat similar situation, except that he’s a more successful showman that me. As such, he touts what he sincerely believes his product benefits are and – at any moment – where the company is going. But, investing in his company should not be seen as a guarantee of profit. Ever look at their numbers critically?
It’s taken me more than 50-years of market speculation to be able to see things clearly. You don’t just wake up one more a winner. Takes a ton of work.
My latest trade, 500 shares of a Bear side ETF was entered at 12:07 PM EST Monday. The position was ahead a few dollars at the close Monday. It will likely be up a few more bucks at the open today – maybe even enough to pay for a good dinner out.
BUT THERE’S NO GUARANTEES. I can still lose my ass. My exit is likely to be suboptimal. Investing, understand, is largely mathematics with far less importance of transient “NEWS” than people think.
The same Greed is rolling over in Crypto Land, though. People are all hot for the “free money.” Scanning stories like this – First Ethereum Mainnet Shadow Fork Goes Live Before Shanghai (beincrypto.com) – are all over the place. But is it a good investment?
Depends where you look and if you can take in an alternative view and make good judgments: Gemini Continues Layoff Train (cryptodaily.co.uk). At the same time, though, BTC was still trading a shade under $23,000 at clicktime. Go figure.
Our Crypto view has been remarkably steady: It’s a GAMBLE. Swindle, sure and Ponzi scheme, too. There’s zero book value. Make up a 27-digit number, write it to a .txt file. Think anyone will give you $23-large for it?
Investors (like Warren Buffett and his partner Charlie Munger) know better. As the Motley Fool reported last year: “On more than one occasion, he’s made his voice heard on how he believes the cryptocurrency is worthless and holds no intrinsic value. But his 2.3% stake in Nubank gives him indirect exposure to the asset.” Book value means something to Buffett, see?
A Business History Lesson
It’s unlikely you can name a single winning miner from California’s 1848 Gold Rush. We do know one company that made a fortune in the Gold Rush, though: Levi Strauss. They made the denim clothing the miners needed starting in 1853. As we learned in grad school, Strauss was “mining the miners” – and it rhymes with Buffett and Munger’s NuBank position. Following?
Look, I don’t mean to bore you with how real economics works, but there is speculation (gambling) which is what I enjoy. Then there is “pile on with the herd” with greed in your heart. Which, as I figure it, has driven Tesla, Bitcoin, and many other “hot” “speculative opportunities.” But they’re not “investments.” As such, if you want to believe a pot smoking CEO, you get what you get.
That’s what’s on trial in America now: Money for nothing and your chicks for free.
Woke, entitled, free-luncher’s abound and it won’t end gently. Musk is in dire straits. I won’t predict Musk will lose. But there’s a mob (woke whiners) with greed in their eyes, looking for an oak tree and holding ropes.
The Woke Mob has turned on Musk. The mob is piling on to an anti-Musk agenda at the periphery – it’s what mobs do.
But it’s also not an isolated event. Digital lynch mobs are forming all over the world: European official warns Musk era of ‘Wild West’ for free speech is over: ‘There will be sanctions’ | CLG News (legitgov.org). Sanctions attacking Free Speech? Will the dweebs of Davos Weffers ban questioning bugs to banish beef?
Call the Federal Trade Commision: I want my $5-million “Truth in Advertising
reparations settlement.” Land of the FREE my butt. Defend and protect, ditto. This was sold at virtually all of the edumacating centers. Funded by the government and doesn’t that make them subject to Product Liability suits?
Further to April
Future is bifurcating. Mentioned in the Monday column that some remote viewer types are looking out to April (first week to 2nd half) when something Big will happen, by their processes.
Several readers point to the story out that the Earth’s Core has stopped rotating. In fact, it may be starting to turn the other way. Earth’s inner core may have started spinning other way: Study (phys.org)
This would fit with some of the vision described in the Monday piece. But more to the point, does this perhaps drive OTHER cycles?
I didn’t put a link up to Joe Brandt’s dream about California sliding into the Pacific, but here’s a starting point: In 1937 Joe Brandt saw an Earthquake sink Los Angeles, much of California and Japan. An event anywhere in the March-June window would “fit” with this vision.
Keep an eye on G.A. Stewart’s site for any updates to the Rare Birds phrase. Because on sites like Astronomy Calendar of Celestial Events 2023 – (seasky.org) we find on April 22-23 the Lyrids meteor shower is due. 20, or more, meteors per hour. Statistics are that eventually a large one will be in the mix. How big? No telling. Smallish, we hope.
Watching the future resolve one path, or another? That’s our fascination: How a date or time-range is voted by group expectations of humanity acting as the collective Quantum Observer will resolve among these choices is a Great Work worthy of study.
Ripping Down the Wires
Another page for the California gun law report card: California shootings: At least 19 people dead after three mass gun attacks in just two days (inews.co.uk). It’s why we call the state Gruesome.
Which, in turn, trash cans any faith in the FBI to act in an even-handed manner. Legal, political strategy in letting FBI search Joe Biden’s home (floridapolitics.com). Is Joestapo a word, yet?
Fahrenheit 451 Department: Turkish prez Erdogan Warns Sweden on NATO After Koran Burning (thedefensepost.com). Which ripples into Finland’s top diplomat suggests that the country may have to join NATO without Sweden | Fox News.
The Mainstream hasn’t told you, but flash goggles at the ready and watch those fallout shelter ads in New York; World War III is here. War preparations in Moscow: Russia will declare a “New Patriotic War” against NATO – “The victory will be ours, as in 1812 and 1945” – WarNews247
On which cheerful note, we will be back in a flash, or on Thursday. A decision regrettably above our pay grade.
Write when you get rich,