What’s new? Not a lot this week.
The GameStop bubble duly deflated but the event brought to the regulators’ attention all sorts of issues about market manipulation. Some say the events of last week may be the death knoll for aggressive short selling hedge funds. If so, three cheers to that!
There are some slight hints that markets are seeing an economic recovery and maybe a little bit of inflation because yields on some fixed income stocks rose towards the end of last week. That fed through into a drop in the gold price, but I am doubtful that this is a developing trend.
Corporate results in the US seem in the main to be better than expectations, but the market is looking backwards only if it prices shares on that data alone.
Elon Musk appears to have acted even more bizarrely than usual in spending USD 1.5 billion on Bitcoin. As Tesla has only just become a cash flow generating business, I assume this is shareholder money. That raises an interesting question about companies doing what they are expected to in terms of business activity – perhaps he is taking the lead from Softbank?
Reasons to be cheerful, parts 1, 2, 3 and 4? I think not – more a case of reasons to observe rather than participate!
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