FOMO meets DOMO meets POMO – What that Means for Markets

A quick glossary pf terms

FOMO – Fear of Missing Out

DOMO – a company in Utah that just became the latest Unicorn. It was stealth until Unicorn status – whatever the f&*()_k that even means.

POMO – Short for Federal Reserve ‘Permanent Stock Market Riggery

Let’s get this started…

I guess the easy money has been made. I don’t know what ‘easy money’ is and I have never made any, but it is a thing:

At the moment, a new kind of fear has shown itself in biotech stocks. It is a fear that your stock can drop 50 percent overnight. That fear has for the moment trumped the longer running fear of ‘missing out’ (FOMO).

Here is a chart of the Biotech index:

As I mentioned several weeks back Bios had a blow-off move and now this pattern break yesterday $BTK $IBB $BIB

— Dan Zanger (@DanZanger) Apr. 28 at 06:21 AM

Apple just reported it’s best quarter ever and the stock is trading down $1. I have no idea where it will be in a week or a month, but people seem upset and entitled to endless gains. That is not how the stock market works.

Finally, there is this quest for ‘Unicorns’ happening in the private market that at one level makes total sense, but it never lasts. You can’t force build Unicorns, at least ones that last.

As for China, their markets are red hot and I am hearing of all kinds of speculative fever in brokerage account openings and margin lending. I plan to be in Beijing in a few weeks to get a feel for it myself.


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