TSLA seriously!
Hi!
I was ending my education / starting my career when the internet bubble exploded 20 years ago... I still remember the verticality of some charts!!!
I don’t say TSLA can be the ONE over a million BUT I agree with many of you that the downside risk is here and such valuations usually ends in bloodbath. Private investors / hipster / Robinhooders and other FOMOers do not understand the markets’ mechanics / valuations, etc... and that’s fine for smart money!
But the tulip mania proved that investors had it right so long they had it right.
That TSLA comes in the indexes will make possible for a lot of institutional investors to get out due to quasi infinite liquidity & therefore realizing their profits without execution challenges / finding blocks, etc...
Truth is that if I was a manager in a mutual fund / hedge fund / whatever you name it money managers that bought a ticket on TSLA 3-5 years ago and kept it last year in August 2019 when there was rumors that it could go bankrupt... I would wait with great impatience that TSLA enter the indexes.
Then if and if I still have the stock, then my typical 10m USD position is worth 150/200m USD and nobody (serious investors) will take my block then I’m stuck with my huge pending profit!!!
Thanks to algo / index funds for giving real money managers the opportunity to get out of the case (they might & and probably will come back IF the valuation is back to attractive levels).
Smart money can thank the crowd of private investors that made possible for them to enjoy a fat bonus.
PS: high stocks valuations -> more IPOs at crazy valuations (AirBnB) -> bonus to corporate bankers & brokers. December 2020 is especially kind to Wall Street!
I was ending my education / starting my career when the internet bubble exploded 20 years ago... I still remember the verticality of some charts!!!
I don’t say TSLA can be the ONE over a million BUT I agree with many of you that the downside risk is here and such valuations usually ends in bloodbath. Private investors / hipster / Robinhooders and other FOMOers do not understand the markets’ mechanics / valuations, etc... and that’s fine for smart money!
But the tulip mania proved that investors had it right so long they had it right.
That TSLA comes in the indexes will make possible for a lot of institutional investors to get out due to quasi infinite liquidity & therefore realizing their profits without execution challenges / finding blocks, etc...
Truth is that if I was a manager in a mutual fund / hedge fund / whatever you name it money managers that bought a ticket on TSLA 3-5 years ago and kept it last year in August 2019 when there was rumors that it could go bankrupt... I would wait with great impatience that TSLA enter the indexes.
Then if and if I still have the stock, then my typical 10m USD position is worth 150/200m USD and nobody (serious investors) will take my block then I’m stuck with my huge pending profit!!!
Thanks to algo / index funds for giving real money managers the opportunity to get out of the case (they might & and probably will come back IF the valuation is back to attractive levels).
Smart money can thank the crowd of private investors that made possible for them to enjoy a fat bonus.
PS: high stocks valuations -> more IPOs at crazy valuations (AirBnB) -> bonus to corporate bankers & brokers. December 2020 is especially kind to Wall Street!
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