I have been pretty brief with recent posts but I have a lot of links and ideas to get off my chest.
Let me start with a laugh.
First off…this is just hysetrical. You can fill in any tagline and it works:
When you get stopped out of a good trade. pic.twitter.com/i7lZYTfcJ5
— StockTwits (@StockTwits) January 22, 2018
Now, here we go with your OMG (this is not a jew) video of the day:
— ABC News (@ABC) January 23, 2018
Ok…here we go.
What a giant party every day the markets open. At this point in the boom we should all submit a yearly return we want on our cash accounts to Janet Yellen and Trump and just close the markets.
Although it’s been easy to make money – if you are long – this stat blew my mind about the S&P:
Since 1993, if you bought the S&P 500 on the open and sold on the close each day, your return would be -5.2%…
But if you did opposite (bought on the close, sold on the open the next day) your return would be a stunning 568%.
(meaning more than all of the S&P’s investment performance came in after-hours trading)
As fun as the markets are, they are broken in so many ways.
The good people at GGV Capital shared this today which is one reason markets remain broken…investment banks won’t do non unicorn IPO’s.
No wonder ICO’s, tokens and cryptos are the craze. In fact, more than TEN percent of the $3.7 billion raised in ICO’s has been stolen. So, millennials and global traders think that having 10 percent stolen is a fair price to pay for not dealing with bankers.
If I was younger and richer I would be putting together a boutique investment bank to help leading series D software companies get public NOW. Obviously this window will shut, but nobody knows when.
It’s not just public markets raging.
The Global VC market hit a decade high at $155 billon invested (or pissed away) with $48 billion coming from China!
Coinbase which charges commissions to buy digital currencies that your nephews and cousins trade with their Korean doppelgangers while playing ‘World of Warcraft’, did $1 billion in sales in 2017. Oh My god. Of course Coinbase today hired Twitter’s head of customer support. Makes sense that the person in charge of letting Trump tweet and Russian trolls roam wild now is in charge of support at the largest firm selling currencies to kids at high commissions.
Ok back to the markets…
Michael Batnick had a great post with some stats that made me shake my head:
Amazon gained 56% in 2017. Google gained 33%. Apparently that wasn’t enough. Year-to-date they’ve tacked on another 12.5% and 10.6% respectively, adding a combined $147,782,647,497 in market capitalization.
Amazon’s market cap was $70 billion in 2011. It just added the equivalent amount in fourteen days. That’s bigger than Colgate-Palmolive and General Motors and Marriott and 83% of companies in the S&P 500. Things are starting to get silly, and it’s not just happening at the company level, it’s showing up in the indexes.
There were massive biotech deals today as the large bought the small. The small cap biotech index is now back at all-time highs:
Amgen – the granddaddy of biotechs also hit all-time highs. That’s not bearish!
It’s so raging out there that I decided to do a ‘Momentum Monday Video’ with Ivanhoff this afternoon to tour a bunch of sectors and ideas. I hope you enjoy.
Also published on Medium.