Black Monday

[bull....]

Dow closes more than 150 points higher to erase its 2020 losses

https://www.cnbc.com/2020/08/27/stoc...lose-news.html


low rates for ever propelling valuations on future cash flows of companies

[bull....]

RBNZ Says Monetary Policy Approach In Line With New Fed Strategy

https://www.bloomberg.com/news/artic...w-fed-strategy


So the rbnz likes the big policy shift from the fed and sees them possibly following

[bull....]

did you know that MCY and MEL and VCT the leading power companies in stock moves at the moment are potentially if they close around current levels, they will be record mthly closing highs.

with the RBNZ buying over 100 m of bonds per week at the moment some of that money received is obviously flowing into these bond proxies for there stable tax paid dividends and who can blame them 3 - 4 % vrs bonds under 1% less tax.

get your income while it lasts

[moka]

Monetary policy is often discussed and implemented but fiscal policy is not implemented so readily.

https://www.nzherald.co.nz/business/...ectid=12360674
Central bankers grapple with changed landscape at Jackson Hole.
But one key factor that occasionally entered the discussions and is top of mind for many policymakers is the need for fiscal policy to remain aggressive to support monetary policy actions, ensure demand does not collapse, and mitigate any heightened inequality due to the crisis. In the US, in particular, massive initial fiscal support has waned significantly in recent months and is in danger of evaporating completely if a new relief package is not approved.

[bull....]

Shocker’ euro zone data raises questions about what the ECB will do next

https://www.cnbc.com/2020/09/01/what...in-august.html

looks to me like they will need to do more stimulus to stop deflation

[bull....]

heres the WTF chart of the day adjusted for stock split..... simply stunning returns

https://www.marketwatch.com/story/th...?mod=home-page

[BlackPeter]

heres the WTF chart of the day adjusted for stock split..... simply stunning returns

https://www.marketwatch.com/story/th...?mod=home-page

It is only stunning returns if you bought in the past and are selling now ;

But yes, looks good. You could draw similar charts for many stocks ... amazon, google, microsoft, AltaVista, 3Com, Yahoo!, ATM, Wynyard, Bitcoin, FPH, MFT, ...

Some of them managed so far to grow to ever higher highs ... and others didn't. Some crashed after amazing peaks into the ground and others moved after exciting hype spikes to a quite boring flat line ...

Question is - to which part of this group will Tesla belong in the future? Generally speaking - no company can maintain their market cap for a long time unless they can convince the market that they will over time earn (and return) more money than their market cap is worth today.

This seems to be easier for companies which produce easily scalable products (like software or automated ticket clipping services), though this is no guarantee either (check out Dotcom bubble).

Manufacturing electric cars is not easily scalable (you need a hell of a lot of additional hardware if you want to increase your throughput) ... and Tesla will need to manufacture and sell a huge amount of electric cars to justify their current market cap (US$450B) - just to compare .... Daimlers Market Cap at the moment is Euro 45B .... i.e. roughly 10% of Teslas.

Bubble, bubble ?

[bull....]

wall st having another great day , bit of profit taking in tech and rotation into other sectors today

[sb9]

Dow on the verge of topping 30k on back of more stimulus from FED.

[Entrep]

Blue horseshoe loves Anacott Steel