In keeping with the COSMOS show, dinosaurs were quite popular in THE MEME world. Boxcars took the back seat. Appropriately so, we might add. Dr. Tyson has earned it.
There appears to be some controversy re what is a MEME with significant bibliography presented as evidence. Our analysis concludes this is a market driven strategy to keep newcomers at bay. Who can blame them, considering the robust cash flow.
Our TECHNICAL Analysis team has been tracking the Wicked Laughter Index, mainly focussing on a narrow French district. This week, the detector could not even register a faint trace. That worries us.
As predicted, the horse has left the barn, the train has left the station, and the crashers have eaten the laddoos. MEME(S) appears to have breathed its last. As with any dying stock, there is an odd(ball) buy here and there. But the fat lady, it appears, has sung. And boy, did she sing!
Those who sold some, not all, did well, especially if they bought when no one stepped forward. Those whho bought at the peak? They should have read the piece on cyclical stocks.
What is the bigger lesson to be learned here? You guessed it. DIVERSIFY.
Had you bought GS instead of MEME(S), you would have bought the entire market. It wouldn’t matter if a particular thread or a concept went out of favor. Investors wwoukd have noticed that investment and revenues in ALL VIEWS was adversely impacted by the swoon in MEME(S). So if they had owned ALL VIEWS, they would still have felt the pain - though not as much as those who were late to the MEME(S) party.
But the slowdown in ALL VIEWS was more than compensated by the energetic folks at CAFE. The health an fitness section also showed a nice bounce from low levels - which were caused by MEME(S) dominating trading for weeks!
Recipes for ghost were still fervently exchanged. And in a twist, the boxcars concept was exported to other sub forums. So what seemed a setback, was simply the market forces in action. What originated in MEME(S) now became a significant contributor to several forums. The MULTIPLIER EFFECT, as the two-handed Economists like to say.
It is legitimate to ask if GS is a proxy for the stock market of one country, or global stock market. Or is it a proxy for ALL asset classes combined. And if so, is that for ALL asset classes with one country or globally.
These are good questions you have raised, Dear Readers. Really good questions.
Give yourselves a well deserved hand. Look around you and exchange greetings. For you are one smart crowd.
The gift of cyclical stocks keeps on giving. A non interactive and uninteresting person once said : “I like the dangerous curves of the cyclical beauty. And I dislike the dangerous curves of a cyclicall beauty”. A more uninteresting quote has yet to be recorded.
The Environmental Corner had been languishing in obscurity for several months. You couldn’t give those shares away for free. Buy Low didn’t apply. No buys. And stock had sunk lower than low.
Then in charged a dashing and interesting person, ripping apart the stock for its soporific non content. SELL SELL SELL he screamed. That brought in other critics who took the stock to the woodshed. All seemed lost.
The management fought back, if you can call it that. Truth be told, the response was tepid. No, tepid is too kind. It was downright lame. OP, sorry CEO, was getting his ash kicked. But what followed was storybook cyclical curvaceous beauty.
The one sided exchange increased viewership - a 80% increase in a matter of minutes.
To this day, reporters aren’t sure what caused the spike in the stock price - was it the exponential increase in viewership? Or was it a little noticed catalyst - a buyer?
Well, that’s the point dear readers. The symbiotic relation between viewership and an odd buy can create wonders
People were running around covering their short. (No worries, the women and children were safely whisked away).
And then there was a second buy. Followed by a 3rd.
And all hell broke loose. One of the critics, it seems, also had a short position. (The ethics of this is off topic, and wont be discussed here).
He protested to the SEC that the 3 buys were from the same investor. That the buys could easily have been consolidated by a new technical feature available at major brokerages - the multi-quote function.
His protest was noted. And rejected. A chuckle could be heard from the SEC headquarters. This was more wicked than the one that was once heard in a remote location in France.
The VALUE invesstors have bolted. But the growth crowd has piled on. The bully index hit record highs. Note of caution here - while the volatility index has been known to be a contrarian indicator, pundits concede the bully index could simply be an indicator of bubble formation.
Which will win out? Growth or value? While we aren’t ready to write off MEME(S), we caution that price matters. The investor who gave this stock 2nd life has sold most of her positions.