Stay updated with breaking news from Dave kranzler. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
The “beta” for long/short equity hedge funds has more than tripled vs the average beta since at least December 2018. Beta is the most common measure of stock or portfolio volatility relative to a broad equity index. Technically, beta is the percentage change in a stock (or fund) for every one percent change in the index. A stock/fund with a beta of 1 tends to move in percentage correlation with the index. A beta of 2 means a stock/fund moves 2% for a 1% move – up or down – in the index. As this applies to long/short hedge funds, it means these funds in aggregate have substantially increased their long exposure to the riskiest stocks. For long/short funds, it also likely signals that the net long position is at its highest in a long time and/or the amount of margin/leverage applied is soaring. Hedge funds have been underperforming passive investment funds and the broad indices. My bet is this huge allocation to riskier stocks is a reckless effort to raise hedge fund performance numbers – using other people’s money – and thereby attempt to maximize performance fees charged.
I first presented ARKK as a short idea in the January 3, 2021 of my Short Seller’s Journal issue at $124.49. And of course like every other insanely overvalued stock or ETF, it continued to run higher, with a high-close of $156 on February 12th. As air seems to be leaking out the stock bubble, ARKK has taken a 25% beating since the high-close. At one point Friday it was down 32% from the high-close. ARKK is an ETF that has attracted a high degree of speculative interest because it has invested heavily in many of the high-beta, Silicon Valley “tech” and bio-tech stocks. These are stocks that have captured the market’s imagination to such an extreme degree that once again, just like in 1999, earnings or even the potential to generate earnings are irrelevant. The ARKK Invest website describes its investment thesis as “disruptive innovation.” It harkens back to 1999 when earnings were dismissed as “old economy” and the value of dot.com’s was derived from “clicks and eyeballs.” At some point as the stock bubble is popping, ARKK will turn out to be “disruptive” to its investors net worth.
A Modest Proposal For Price Discovery In The Silver Market – Investment Watch investmentwatchblog.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investmentwatchblog.com Daily Mail and Mail on Sunday newspapers.
Gold & Silver Demand Finally Creating Large Shortages At Current Prices? – Investment Watch investmentwatchblog.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investmentwatchblog.com Daily Mail and Mail on Sunday newspapers.
Dave Kranzler: A modest proposal for price discovery in the silver market | Gold Anti-Trust Action Committee gata.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from gata.org Daily Mail and Mail on Sunday newspapers.
Game Over For Gamestop? – Investment Watch investmentwatchblog.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investmentwatchblog.com Daily Mail and Mail on Sunday newspapers.
Silver Doctors, Released on 2/2/21 From the Reddit traders thinking they can take on the big bank silver shorts, to silver bullion dealers getting wiped out of their inventory, and to the wild price swings to the tune of many dollars per day, it has been one wild rollercoaster ride in silver lately! And If you’re on this ride, you’ll want to make sure the person you are sitting next to not only likes this kind of stuff, but perhaps more importantly, won’t puke his guts out halfway through it! So we called up our good friend Dave Kranzler of Investment Research Dynamics to talk about some of the things going on in the silver market right now, as well as to perhaps help calm some of the fears of any new riders out there.
Note: I learned of the Fed’s redefinition of M1 from the invaluable research of John Williams at Shadowstats.com – This information was not reported by any mainstream financial news sources. The Federal Reserve quietly announced on December 17, 2020 that it is redefining the M1 and M2 Money Supply Measures (H.6 Release) by shifting the savings deposits component into M1 from M2. M1 is supposed to measure “demand money” – i.e. funds that can be accessed for use without prior notice, primarily checking account funds, including travelers checks and free-floating currency. M2 is M1 plus “term” deposits: savings accounts, CD’s in amounts of less than $100k and retail money market funds.
Dave Kranzler: Fed starts obscuring money supply data as it prepares to 'go Weimar' gata.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from gata.org Daily Mail and Mail on Sunday newspapers.
The behavior of the mining stocks since early August is the reason why I am emphatic in recommending to never go “all in” and to keep plenty of cash on hand to take advantage of market pullbacks. The sector had a massive up-cycle since mid-March. Consider this: since the market bottom in March, GDX is up 84% YTD. GDX has outperformed all of the major stock indices including the Nasdaq, which is up 80.4% over the same period. I am positive that fact would take most market participants by complete surprise. After all, the precious metals sector is never discussed by mainstream financial media unless it’s in a negative context.