Over the last few months, the markets have become engulfed by a palpable feeling of exuberance. I remember the last time investors were engulfed in a near “panic” to invest. It was 1998, where following a correction, the market began a seemingly endless run to the peak in 2000.

I’m not too fond of market analogs as no two market environments are ever the same. However, there are many comparisons currently to the late 90s to explain the current bull market. The chart is below.

Gambling in the stock market may be fun in the short-term. However, it would be best if you always remembered why Las Vegas makes billions in profits every year.

If you play long enough, “the house always wins.”  FULL STORY

Elon Musk’s younger brother, Kimbal, appears to have made more than $8 million on Tesla’s stock this week, as he exercised options to buy the stock, two days after he sold those shares at 6.5 times the price he paid for them.

Good timing for board member Kimbal, as the sale of share was made Tuesday, with some of the sales executed above Monday’s record closing price of $498.32.

I am not trying to imply that the current market is a bubble. But surely, investors have moved from panic to optimism (I won’t say euphoria). Expectations are high and investors seem to be generous on valuations. It is time to be watchful and well calibrated.

I would just like to say what Warren Buffett articulated extremely well, “The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs.” Read More

The market is not stupid. Data compiled by Deutsche bank shows new money and flows into the equity markets is almost all going into Tech or healthcare – the rest of global commerce is essentially flatlining or negative. If your cash is invested in index-followers on the basis the rising Tech tide will lift all boats – then beware, it’s a false connection. These stocks could be dragging for years. (And explains why a V-Shaped recovery was never realistic.)

Of even greater concern is what is going on in debt.

This year we will see global corporates raise some $4 trillion from the debt markets – ostensibly to fund themselves through the Pandemic. I read a great interview with sage investor Lacy Hunt: “The Pandemic will eventually go away, but the debt will still remain.” He went on to describe how: “Debt is a double edged sword: it’s increasing current spending in exchange for a decline in future spending unless it generates an income stream to repay debt and interest.”    Full Story