Desperate buyers - fearful of missing out on the next Facebook - are panic-bidding Snap's stock price this morning. Up 17% to $29 the cash-losing company is now worth almost $41 billion - more than Ebay or Sony...
We wil have to wait for Monday/Tuesday for the shorts to appear (T+3)...
The question seems to be - Facebook, Twitter, or... Pets.com?
While in recent weeks there has been a material increase in Fed balance sheet normalization chatter, according to a new report from Deutsche Bank analysts, it may all be for nothing for one simple reason: should the US encounter a recession in the next several years, the most likely reaction by the Fed would be another $1 trillion in QE, delaying indefinitely any expectations for a return to a "normal" balance sheet.
Via Charles Hugh-Smith of OfTwoMinds blog,
Strip away the centralized power that protects and funds cartels, and prices would plummet.
The mainstream narrative is "the problem is low wages." Actually, the problem is the soaring cost of living. If essentials such as healthcare, housing, higher education and government services were as cheap as they once were, a wage of $10 or $12 an hour would be more than enough to maintain a decent everyday life.
Dear Readers, I appeal to you four times a year. This is my quarterly call for your support of your site.
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In the first stage of the Trump Rally (from the election to year-end), investors appeared to hedge as the market rallied. However, since the start of the new year, Goldman Sachs' proprietary macro hedging indicator has traded along with equities, suggesting that investors are buying stocks and discarding protection. As Goldman's John Marshall and Katherine Fogertey explain, the Trump rally has changed the market - Investors Stopped Hedging.
As the Goldman duo notes, Long-dated liquid hedge costs at a multi-year low, and explains: