One sure sign that stocks are getting overdone is the actions of overconfident investors that bid up stocks in a euphoric frenzy, only to dump them at the first sign of trouble. These behavior patterns normally usher in a corrective stage in the stock market, but exactly when that will occur is anyoneâs guess.
Investopiaâs definition of froth ârefers to a market condition where an assetâs price begins to increase beyond its intrinsic value.â Wall Streetâs âReefer Madnessâ event this week is just such an example.
Certain stocks in the cannabis sector saw their share prices double and then triple in a matter of days. Penny pot stocks with little to no fundamentals skyrocketed higher as well, notching up 50 percent gains or more each day.
by Jim Verdonik and Benji Jones February 12, 2021 .
Editor’s note: Jim Verdonik and Benji Jones, cofounders of Innovate Capital Law discuss Special Purpose Acquisition Companies (SPACs) – the hottest trend in capital raising. But their focus is on the business implications of SPACs, not the legal.
Article I published Thursday describes the 600% growth of SPACs in 2020. Article 2 describes how to determine whether a SPAC deal is right for your business. Article 3 describes how to choose the right SPAC for your business. Article 4 describes the steps, time schedule and cost for doing a SPAC deal.
JIM: In our last discussion, we discussed the explosive 600% growth of SPACS during 2020 that caused SPAC dry powder to equal or exceed the entire U. S VC industry.
After Chinese Shortage, Chip Makers Dominate
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Ford Motor Company became the latest to warn that a lack of supply of semiconductor chips would harm their business - or more precisely, the production of F-150 trucks. When the top-selling vehicle in the country gets held up, the White House takes notice.
The Biden administration now says that an executive order is in the works to alleviate the problem. The White House will review supply chains and develop a long-term strategy to avoid future shortages. I think it’s another reason to make and stack chips here in America.
Wednesday, February 10, 2021
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Times have changed since I wrote Bitcoin Rally is Just Beginning in November 2017, prior to my 2018 run for Rhode Island State Treasurer. I believe that Bitcoin has real potential to make many ordinary people wealthy beyond belief. I further believe, the trigger that will set off the next vault upward in price is arriving soon in the form of access and leverage, I wrote over three years ago. The ability to leverage your Bitcoin investments and its many related offspring is quickly becoming a reality. An instrument like Exchange Traded funds, Notes, Futures, Options on Futures and options on ETF’s are all coming soon. Both the CBOE and CME intend to trade Bitcoin futures and options.”