Morgan Stanley and Tesla – The Bull Market and Conflicts are Raging

The bull market is in hyperdrive and I adore it. It’s been quite lovely to drink with this particular bull.

Today, I will showcase the bullish glory with this stat for small cap stocks:

$IWM officially up 13 of 14 days for the first time in history.

— Ryan Detrick (@RyanDetrick) Feb. 26 at 01:08 PM


Despite a lunatic government, the internet being [email protected]!*ked (a must read btw), money is rolling into common stocks. The government printing presses are working their magic and the outflow of money from emerging markets to developed ones looks secular.

As the boom rotates and continues, confidence can’t help but creep up, chances get taken, deals get done, assets get chased, and for the lazy bankers… oh dear god the FEES.

This boom has NOT been an easy one to catch for so many. Confidence is still crippled for most. To help understand what I mean, take a look at this chart comparing consumer confidence to the S&P:

Great chart of consumer confidence and $SPX. CC is still no where near previous peaks. $SPY

— Ryan Detrick (@RyanDetrick) Feb. 25 at 10:26 AM

This gap WILL narrow and as we wait to see how it narrows, things could get silly.

Conflicts are inevitable in business, but in bull markets they start to rage.

Not that I EVER believed in the Chinese Wall, but in a bull market it is leakier than the Exxon-Valdez

The definition of the Chinese Wall as it relates to investment banks and brokers:

The term was popularized[1] in the United States following the stock market crash of 1929, when the U.S. government legislated information separation between investment bankers and brokerage firms, in order to limit the conflict of interest between objective analysis of companies and the desire for successful initial public offerings. Rather than prohibiting one company from engaging in both businesses, the government permitted the implementation of Chinese wall procedures.

Oh this happens! Color me a cynic but today Morgan Stanley ($MS) announced a $1.6 billion fund raising for Tesla ($TSLA). Yesterday, some lunatic in Morgan Stanley ‘research’ plastered a $320 price target on this same company. I am sure a Morgan Stanley securities attorney can explain this is no ‘Chinese Wall’ violation but it sure smells like 10 day old Dumplings to me.

The gloves are off. The media has joined the party. There is enough money to go around if everyone turns a cheek.

I love bacon as much as the next guy, but the hogs are out. Be a little careful.


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