I have long wanted to have an ESPY’s for Financial Markets. If you want to help with this project, please get in touch with me.
If I had to give two Academy Awards for ‘bad acting’ in a the the markets in 2014 they would go the bankers (Goldman Sachs and Morgan Stanley) who brought Castlight Health ($CSLT) public and Janet Yellen for yelling ‘fire’ in a crowded room full of Biotech investors.
Here is the Castlight Health IPO:
— Jean Fonteneau (@JFinDallas) Feb. 19 at 08:57 AM
Here is the deal tombstone (a perfect description in this case)
Here is Janet Yellin making her ‘streched’ valuation call:
Biotechs up 40%+ since Yellen told congress last July that shares were "substantially stretched." Update this week? pic.twitter.com/kGGYliEunM
— Charlie Bilello, CMT (@MktOutperform) February 23, 2015
The markets forget. That makes sense because the markets are human (for now) and humans forget. We could not move forward if the markets were rigged not to forget. I also do believe we could ‘forget smarter’ if we honored the winners and losers of each year.
At the Oscars, even if they don’t believe it, the winners thank the ‘Academy’.
I never hear anyone thank the market, someone else’s fear or another’s greed. It’s usually…’I can’t believe you missed that..’ or ‘look at how good I am.’
I really try not to be that person.
In tribute to the Oscar’s…I will add ‘the freaking Airlines’ to my wrongs of the last few years.
I have missed most of this biotech move of the last 5 years (public shaming here) because I did not follow my simple trend following model and it’s time to add Airlines.
My biases kept me out of these great trends that were ‘knucklehead’ simple on paper.
I will miss many more trends and luckily catch many more that look exactly the same as the biotechs and airlines on a 2 dimensional sheet of paper.
What would your Oscar be for in 2014?