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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: ajtj99 who wrote (41766)11/3/2021 2:45:19 PM
From: Real Man  Respond to of 97557
 
Crazy valuations are everywhere, justified by “paying better than bonds”. Crypto pays 10% on usd pegged stuff. By the same token as justifying a Buffett ratio North of 2.5 (better than Rates) crypto will keep going to the moon. Because it yields that much more, people and funds hungry for yields will jump in. The value of crypto is now systemic (several Trillion$) so the fed will have the same dilemma it always has: bail them out or the false systemic crash.

TSLA can grow from being worth more than entire auto industry to being worth more than the world gdp, on derivatives and gamma squeeze, but the crash from there will be that much worse. We are at a point of failure of the Fed and it’s bailouts. It can be a lot worse than the crashes we had so far because the Fed can’t bail out this one. The Fed is no longer credible. They said transitory inflation, it is not transitory.

People can get 7% in TIPS, better than long overpriced equities.