Stocks & Equities
- Paul Tudor Jones said he would “go all in on the inflation trades” if the Federal Reserve is nonchalant this week regarding rising consumer prices.
- “I’d probably buy commodities, buy crypto, buy gold,” the billionaire hedge fund manager said.
- “If they course correct,” he continued, “then you’re going to get a taper tantrum.”
- The Fed’s two-day policy meeting is scheduled to conclude Wednesday.
Billionaire hedge fund manager Paul Tudor Jones told CNBC on Monday he’s paying close attention to this week’s Federal Reserve policy meeting in light of recent economic data showing higher consumer prices.
“If they treat these numbers — which were material events, they were very material — if they treat them with nonchalance, I think it’s just a green light to bet heavily on every inflation trade,” Jones said on “Squawk Box.”
“If they say, ‘We’re on path, things are good,’ then I would just go all in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold,” added Jones, who called the stock market crash in 1987 and is founder and chief investment officer of Tudor Investment.
- JPMorgan Chase has been “effectively stockpiling” cash rather than using it to buy Treasuries or other investments because of the possibility higher inflation will force the Federal Reserve to boost interest rates, Dimon said Monday during a conference.
- “We have a lot of cash and capability and we’re going to be very patient, because I think you have a very good chance inflation will be more than transitory,” said Dimon, longtime JPMorgan CEO.
- The bank now expects $52.5 billion in net interest income in 2021, down from the $55 billion it disclosed in February, as the firm stockpiled cash and on lower credit card balances.
Jamie Dimon believes cash is king – at least for the time being.
JPMorgan Chase has been “effectively stockpiling” cash rather than using it to buy Treasuries or other investments because of the possibility higher inflation will force the Federal Reserve to boost interest rates, Dimon said Monday during a conference. The biggest U.S. bank by assets has positioned itself to benefit from rising interest rates, which will let it buy higher-yielding assets, he said.
“We have a lot of cash and capability and we’re going to be very patient, because I think you have a very good chance inflation will be more than transitory,” said Dimon, longtime JPMorgan CEO.
Non-Fungible Tokens (NFT’s) have been generating a lot of press lately, as there have been some very large buying and selling numbers bandied about, and some very well known names being associated with these digital assets. So what are they and how do they work?
To understand NFT’s you must start with knowing what non-fungible means. It is a term used widely in trade agreements to describe an asset that is unique, for instance, ancient Grecian Urns are all unique and will always have their own individual value. They cannot be bought and sold at a standard market price for ancient Grecian Urns, whereas a bushel of #1 USA Corn is not unique, it is CLICK for full article.
Why can’t this dude just shut up? That’s what people, including the SEC, want to know. But look, he just can’t. Apparently, no one can take his Twitter account away from Elon Musk, and Tesla isn’t putting it under adult supervision, as the SEC has suggested. So he was at it again today, responding to accusations by Magda Wierzycka, CEO of South African tech and financial services firm Sygnia, that he’d pumped up the price of Bitcoin by tweeting all manner of things, and then “sold a big part of his exposure at the peak.”
So yes. Musk acknowledged in his tweet today that Tesla had in fact dumped part of its holdings of Bitcoin, but he argued that it wasn’t a big part, that it had “only sold ~10%” of its Bitcoin holdings.
And he came up with a rationalization why Tesla had dumped 10% of its Bitcoin holdings: “to confirm BTC could be liquidated easily without moving market.”
That was a joke apparently. Over the past two months, the price of Bitcoin plunged from about $64,800 to around $33,000 at the low and now hovers at $39,000, after the current Musk-induced spike, with the plunge leaving a big-fat question market over his assertion that Bitcoin could be “liquidated easily without moving market.”
But Musk walks on water, and he can assert anything, no problem.
The second part of Musk’s tweet contained an effort to pump up the price of BTC by walking back his assertion in May that Tesla would no longer allow customers to pay for vehicles with Bitcoin because of the carbon footprint of Bitcoin mining, which was another one of his Bitcoin 180s. At the time, that statement had whacked the price of Bitcoin.
(Bloomberg) — Trying to keep up with the frenzied rise of so-called meme stocks might feel a bit like playing a game of whack-a-mole, bewildering analysts and investors alike.
While there’s no steadfast definition of what constitutes a meme stock, one common thread across the many names being pitched on social media is a focus on heavily shorted companies. Shares of Reddit icon GameStop Corp. jumped as much as 2,500% in January after day traders noticed its short interest had ballooned to record levels.
Investors looking for other stocks that might fit that mold will find nearly 230 firms with a market capitalization of at least $100 million and short interest of 15% or more, according to S3 Partners data compiled by Bloomberg. More than 80% of those names have managed positive returns over the last month with the average gain sitting at about 18%, while the S&P 500 Index rose 2.3%.
Among the most heavily shorted stocks are names like Clover Health Investments Corp., Workhorse Group Inc. and Geo Group Inc., which have already caught the attention of retail traders in recent days.
Meanwhile, Bumble Inc. and Petco Health and Wellness Co., both fresh off initial public offerings this year, find themselves on the outside looking in as part of the few companies on the list that haven’t seen outsized gains over the last month. Joining them is ad-tech firm PubMatic Inc., which boasts the highest short interest at 54%, recreational boat retailer MarineMax Inc. and biotech company Black Diamond Therapeutics Inc., which has plunged more than 50% over the last month.
While these sudden rallies can create lucrative returns for investors in the blink of an eye, the extreme volatility that accompanies them can quickly catch traders offside, leaving them holding the bag as shares plunge back to earth.
After opening the week with a 32% gain, Clover Health’s shares jumped by as much as 142% over the next two days. But, by the close of trading Thursday, anyone who had bought and held shares after Monday’s pop was now underwater.
“I can’t imagine this is going to continue in the same form or fashion for much longer,” said Barry Schwartz, chief investment officer at Baskin Wealth Management. “Just because something is shorted doesn’t mean buying it is going to work out for you,” he added. “You’re playing with fire.”
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