logo
logo
Sign in

market wrap up

avatar
optionstrategies
market wrap up

market wrap up at the year that was on today’s Real Vision Daily Briefing, sharing his thoughts on everything from equities to the bond market to crypto and more.He touched on Tesla’s entry into the S&P and said he thinks Tesla (TSLA) may fall after inclusion because almost all buying has happened. He noted that it is very common to see a stock fall for a significant period after inclusion, but did say that this is Tesla, so who knows what could happen.Either way, Pal said that Elon Musk won in the end; he can raise unlimited capital by the equity market. puts stock term But Pal also said this tells you the story of what’s going on right now: people will pay anything for these kinds of stocks and they won’t pay anything for old economy stocks, and companies that don’t need money are doing extraordinarily well.

Pal said this is part of the larger insolvency narrative where the Fed seems unable to get money where it is needed most. Any business that can’t get access to capital has been destroyed, while anybody that can get access to capital can get as much as they need.

As for central bank easing, Pal said we can expect more to come in the future. He said the crypto market is telling us this, and there is also a historical precedent to consider.  sell covered call buy put Generally, inflation falls after every recession and continues to fall for 2-3 years, which is why central banks keep easing, he said. He thinks crypto will be the single most dominant trade next year, and he believes that Ethereum (ETH-USD) will outperform Bitcoin (BTC-USD).

collect
0
avatar
optionstrategies
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more