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).
how
to confuse someone Pal wrapped up
the Briefing with his prediction that emerging markets will break out in 2021
and detailed the opportunities he sees in India, Saudi Arabia, Israel, and especially
Iran.“I’m much more excited about emerging markets than commodities,”Pal said.
“In a technology-driven world with an aging population, the commodity cycles
will be less pronounced. Emerging market dominance is going to be the story of
the next decade.”
Disclosure
I/we have no positions in any stocks mentioned, and no plans to
initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I
am not receiving compensation for it (other than from Seeking Alpha). pacific
drilling nyse pacd I have no business
relationship with any company whose stock is mentioned in this article.
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