Black Monday

[bull....]

the vix is rising as the stock market rising ( normally the vix rises and the market falls ) suggesting to me the moves to upside may get larger

[JohnnyTheHorse]

the vix is rising as the stock market rising ( normally the vix rises and the market falls ) suggesting to me the moves to upside may get larger

VIX is rising as people are using it as a hedge for an expected correction (SPY daily RSI sitting at 82.2).

[sb9]

Interesting article with different perspectives to current share market scenario...Lister Vs Hawes

https://www.interest.co.nz/personal-...xposure-shares

[Corleone]

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 ?

What's unique this time it seems is the millennials buying Tesla are using their share purchases like votes. They have collectively decided Tesla should/will be the future and will pay good money to enable it to happen...."Here's our money Elon, now take over and dominate". The ones I've spoken to see it almost a s a moral duty, returns and EPS etc be damned. The new democracy.

[moka]

What's unique this time it seems is the millennials buying Tesla are using their share purchases like votes. They have collectively decided Tesla should/will be the future and will pay good money to enable it to happen...."Here's our money Elon, now take over and dominate". The ones I've spoken to see it almost a s a moral duty, returns and EPS etc be damned. The new democracy.

It is the same in New Zealand with millennials buying AIR & THL, good iconic New Zealand companies, to support them, but as Martin Hawes said in the previous article “shareholders benefit from high share prices, not the company as such.” Buying shares in AIR is not the same as buying airline tickets – it doesn’t create revenue.

[bull....]

this is what ORR say yesterday at speaking ingagement

RBNZ Governor Orr: Actively preparing a package of additional monetary policy tools to use if needed

Key comments

• Says have been effective in lowering interest rates across the board.
• Says actively preparing a package of additional monetary policy tools to use if needed.
• Says options include negative wholesale interest rates, further QE, direct lending to banks, and ongoing forward guidance about our intentions.
• Says need banks to use risk models, capital, liquidity headroom to support customers’ best long-term interests.

https://www.fxstreet.com/news/rbnz-g...d-202009020034

[stoploss]

this is what ORR say yesterday at speaking ingagement

RBNZ Governor Orr: Actively preparing a package of additional monetary policy tools to use if needed


Key comments

• Says have been effective in lowering interest rates across the board.
• Says actively preparing a package of additional monetary policy tools to use if needed.
• Says options include negative wholesale interest rates, further QE, direct lending to banks, and ongoing forward guidance about our intentions.
• Says need banks to use risk models, capital, liquidity headroom to support customers’ best long-term interests.

https://www.fxstreet.com/news/rbnz-g...d-202009020034

If you want it from the source .
https://www.rbnz.govt.nz/research-an...eech2020-09-02

[bull....]

leading on from what jonny the horse was mentioning we getting a bit of a fall to takes the rsi back under 70 on US markets unsurprising tech is falling the most , energy , financials and utilities doing the best probably that rotation the other day was smart money moving out of tech

[bull....]

Robinhood faces SEC investigation over deals with high-speed traders


that it took payments from high-speed trading firms for sending them customers’ orders to buy or sell stocks or options, the people said. The practice, known as payment for order flow, is a common — if controversial — way for retail brokerages to execute client trades. Critics say payment for order flow creates a conflict of interest for the broker that sells the orders. The practice has raised suspicions that it could lead to sophisticated traders exploiting mom-and-pop investors, although brokers and traders say such concerns are baseless.

https://www.marketwatch.com/story/robinhood-faces-sec-investigation-over-deals-with-high-speed-traders-2020-09-02?mod=home-page

dont some brokers in NZ do this order flow stuff?

[Entrep]