chiangmai
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Tesla
Mar 5, 2021 8:23:43 GMT 7
Post by chiangmai on Mar 5, 2021 8:23:43 GMT 7
This is a US 10 year bond yield issue which the Fed will be forced to do something about at some point. Currently, investors are looking at safer options than equities, that will change fairly soon I reckon and when it does they will remember that Technology is the future.
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AyG
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Post by AyG on Mar 5, 2021 15:54:08 GMT 7
SMT down 5.61% so far today.
A car crash in slow motion.
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chiangmai
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Tesla
Mar 5, 2021 16:28:57 GMT 7
Post by chiangmai on Mar 5, 2021 16:28:57 GMT 7
"Stocks fell with American equity futures as investors await key U.S. jobs data at the end of a week in which fears of a growth break-out sparked volatility across markets. Treasuries rose and the dollar advanced. Europe’s Stoxx 600 index opened more than 1% lower, with every industry sector in the red. Equity futures in the U.S. slipped, with contracts on the tech-heavy Nasdaq 100 signaling more declines after a topsy-turvy week that erased this year’s gains. Ten-year Treasuries recovered, with their yields down two basis points to 1.54%". www.bloomberg.com/news/articles/2021-03-04/asia-stocks-set-to-drop-as-bonds-slump-on-powell-markets-wrap?srnd=premium-asia"LONDON (Reuters) - Investors poured billions of dollars into high-flying stocks even as the ongoing bond market rout led to sharp losses on Wall Street and kicked off a “new era of volatility”, BofA said on Friday. Hovering close to 1.6%, U.S. 10-year Treasury yields have risen close to 45 basis points in the last one month, triggering a selloff in equities, which lost $4 trillion in market value since the mid-February peak. The investment bank, analysing flows on the back of EPFR data, said equity funds saw $22.2 billion inflows, driven by $2.3 billion into tech and $2 billion into financials in the week to Wednesday". “We think the Fed will inevitably move to Yield Curve Control,” Hartnett said, adding that the U.S. dollar may rise ahead of YCC but such an announcement would likely trigger the start of great bear market in greenback".www.reuters.com/article/us-markets-flows-bofa/a-new-era-of-volatility-begins-but-tech-inflows-continue-bofa-idUSKBN2AX0U3?il=0
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Post by rgs2001uk on Mar 5, 2021 21:23:55 GMT 7
SMT down 5.61% so far today. A car crash in slow motion. Nothing more than turbulence dear chap, its not always a straight line trajectory, look on it more like the teeth on a saw. I hold SM, have done for years, yes I would be lying if I said I hadnt taken a kicking to the financial SM ging gang goolies, overall, I am still up, nothing more than a paper loss. Keep the faith, onwards and upwards, these stocks will come back again, the cream always rises to the top. Overall, after what happened last year, I am more than happy with my holdings, still in a better financial place than I was last year.
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Tesla
Mar 5, 2021 21:31:48 GMT 7
Post by rgs2001uk on Mar 5, 2021 21:31:48 GMT 7
"Stocks fell with American equity futures as investors await key U.S. jobs data at the end of a week in which fears of a growth break-out sparked volatility across markets. Treasuries rose and the dollar advanced. Europe’s Stoxx 600 index opened more than 1% lower, with every industry sector in the red. Equity futures in the U.S. slipped, with contracts on the tech-heavy Nasdaq 100 signaling more declines after a topsy-turvy week that erased this year’s gains. Ten-year Treasuries recovered, with their yields down two basis points to 1.54%". www.bloomberg.com/news/articles/2021-03-04/asia-stocks-set-to-drop-as-bonds-slump-on-powell-markets-wrap?srnd=premium-asia"LONDON (Reuters) - Investors poured billions of dollars into high-flying stocks even as the ongoing bond market rout led to sharp losses on Wall Street and kicked off a “new era of volatility”, BofA said on Friday. Hovering close to 1.6%, U.S. 10-year Treasury yields have risen close to 45 basis points in the last one month, triggering a selloff in equities, which lost $4 trillion in market value since the mid-February peak. The investment bank, analysing flows on the back of EPFR data, said equity funds saw $22.2 billion inflows, driven by $2.3 billion into tech and $2 billion into financials in the week to Wednesday". “We think the Fed will inevitably move to Yield Curve Control,” Hartnett said, adding that the U.S. dollar may rise ahead of YCC but such an announcement would likely trigger the start of great bear market in greenback".www.reuters.com/article/us-markets-flows-bofa/a-new-era-of-volatility-begins-but-tech-inflows-continue-bofa-idUSKBN2AX0U3?il=0FFS, the plastic paddy geriatric hasnt even been in office for 60 days and already there is blood on the floor, is he even fit to hold office, is he aware of the carnage around him? Gawd bless Uncle Sam, they call out China for manipulation, meanwhile in the land of the free its aka QE. Is the Fed Reserve the greatest ponzi scheme ever invented? I dont doubt there will be gnashing of teeth elsewhere and accusations of the Thais manipulating their currency from irate in Issan, you really couldnt make this shit up.
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chiangmai
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Tesla
Mar 6, 2021 2:37:07 GMT 7
Post by chiangmai on Mar 6, 2021 2:37:07 GMT 7
What we're witnessing currently is two things:
1) markets reaction to the cessation of unnatural levels of support levels for equities during the Trump era, it's a bit rich to blame Biden when the blame really belongs on the pervious admin. for the markets distortion it caused.
2) a natural reaction by markets to the $1.9 trill. stimulus and progress in fighting the virus.
“Higher interest rates make valuations tougher for technology stocks, but that’s OK because valuations have become excessive anyway,” said Matt Maley, chief strategist at Miller, Tabak + Co. “This correction will take some froth off of valuations. It was about time. They can’t go up and up and up forever.”
"Investors have also accelerated a months-long rotation into industrials, materials and other cyclical sectors viewed as likely to outperform as the economy recovers from the coronavirus pandemic, and away from companies, such as Peloton Interactive and Netflix, that benefited from people staying home during the pandemic".
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chiangmai
Crazy Mango Extraordinaire
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Tesla
Mar 6, 2021 5:17:54 GMT 7
Post by chiangmai on Mar 6, 2021 5:17:54 GMT 7
And so the cycle starts all over again:
"Dip buyers drove a rebound in stocks after an earlier bout of selling pushed the Nasdaq 100 down 10% from a record.
All major groups in the S&P 500 advanced, while the tech-heavy gauge climbed more than 1.5% as giants Amazon.com Inc. and Apple Inc. erased their losses. Robinhood Markets Inc., the trading platform behind the boom-and-bust swing in GameStop Corp.’s shares, has chosen the Nasdaq for its eventual initial public offering, according to a news report. Earlier Friday, equities retreated as U.S. jobs data topped estimates, fueling anxiety the economy could run too hot and kick up inflation. Benchmark 10-year yields stabilized after hitting 1.6%.
“Many investors are going to be buying these dips here, capital continues to be pouring into equities,” said Tony Bedikian, head of global markets at Citizens Bank. Bond yields are still “incredibly low, so equity yields are still very attractive to investors,” he added".
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chiangmai
Crazy Mango Extraordinaire
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Tesla
Mar 6, 2021 6:05:26 GMT 7
Post by chiangmai on Mar 6, 2021 6:05:26 GMT 7
Just to revisit the reasons why: BG cut their Tesla holdings on 11 Feb., just as the 10 year bond yield jumped from 1.12 to 1.16. BG anticipated rotation and their bet paid off. They had the full effect of growth on 100% of their investment for over a year and experienced losses of 13% on only 50% of their Tesla investment. It looks to me like everyone is quids in, unless you happened to buy SMT fairly recently. www.cnbc.com/quotes/US10Y
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AyG
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Tesla
Mar 6, 2021 7:25:18 GMT 7
Post by AyG on Mar 6, 2021 7:25:18 GMT 7
The Grauniad reported that Tesla was down 7.5% in early trading yesterday. I checked Bloomberg, and they closed down a more modest 3.8%.
What struck me, is how far they've fallen from their peak. They peaked at 900.4, and closed yesterday at 597.95 - overall down 34%.
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chiangmai
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Tesla
Mar 6, 2021 8:35:07 GMT 7
Post by chiangmai on Mar 6, 2021 8:35:07 GMT 7
If you bought at $42.34 you really don't care that the shares went from $900 to $600, I certainly wouldn't.
"Ron Baron, a longtime Tesla investor, revealed on Thursday that he had sold about a quarter of his company’s stake in the electric carmaker. Baron told CNBC that his firm sold 1.8m of its 8m Tesla shares in recent months at an average price of $660. Baron’s firm had bought the shares at $42.34 apiece, according to CNBC.
However, Baron said he thought Tesla’s share price would hit $2,000 within a decade. “It was painful selling every single share,” he said. “Their prospects are brighter than they have ever been.”
Baron said he had not sold any of the more than 1.1m Tesla shares that he owned personally, and did not plan to. “I’m going to hold it another 10 years at least,” he said. “I told Elon that I would be the last out.”
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Tesla
Mar 8, 2021 21:17:24 GMT 7
Post by rgs2001uk on Mar 8, 2021 21:17:24 GMT 7
SMT down 5.61% so far today. A car crash in slow motion. Taking another battering today, the world has gone mad, whats going on?
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chiangmai
Crazy Mango Extraordinaire
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Post by chiangmai on Mar 9, 2021 3:56:43 GMT 7
Vaccines, recovery from the virus and the $1.9 trill. stimulus all point to economic recovery in the US (jobs up, unemployment down) but have generated concern about inflation. The 10yr T'bond yield, a good indicator, continues to push higher (this has caused the sell off in the bond market because the price of bonds and interest rates move in opposite directions). As investors have rotated from growth to value stocks concern about high valuations of some tech stocks has caused a rout, more like a normalization, but of course you'd have to read the US papers to know these things . And big oil is now over $70, that won't help one little bit, that's why Americans watch the oil price so closely because of its economic impact.
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AyG
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Post by AyG on Mar 9, 2021 7:21:40 GMT 7
Taking another battering today, the world has gone mad, whats going on? It's not just that the underlying investments are being revalued by the market, SMT itself has dropped dramatically in popularity. Recently it was trading at a premium to NAV of around 5%. Yesterday it closed with a 11.9% discount. (Intraday the discount was as much as 17%.)
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Tesla
Mar 9, 2021 20:27:16 GMT 7
Post by rgs2001uk on Mar 9, 2021 20:27:16 GMT 7
^^^, , tis a pity I have no spare cash at the moment. For the record, I see Mid Wynd and Martin Currie seem to be holding up and havent been affected by this madness in the same way SM has.
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chiangmai
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Post by chiangmai on Mar 9, 2021 21:11:08 GMT 7
I decided that AyG was right so I bought LT Global back but at a decent discount my earlier sale price, happy days.
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