Pulse of the Market - November 2021
FOMO has become a drug as a dog coin making fun of another dog coin pumps then crashes, a Squid Game coin goes to zero, and all the EV stocks go nuclear. Another wild month in the FOMO market....
FOMO (Fear of Missing Out): The Most Addictive Drug of Them All
Shiba Inu ($SHIB), Rivian ($RIVN), Lucid Motors ($LCID), Dogecoin ($DOGE), and Tesla ($TSLA) all have something in common. They have created the biggest monster in stock market history. A feeling of missing out as engulfed the emotions of many investors seeing these coins and stocks go straight up in the air for which seems like an eternity (until they don’t).
The feeling of FOMO is the hardest emotion to control. It’s like being a kid at the ice-cream parlor and seeing the kid next to you get three scoops when you only get one. Of course, you want two more scoops just like him/her. Can you hold your emotions in check and realize you are buying a parabolic chart destined to return to the mean? Or will you FOMO like the masses into something way too late and witness the masses run for the exit as the price craters?
Or you can just FOMO into Tesla then get rug pulled by the CEO using a Twitter poll to decide whether he should sell $25 BILLION in Tesla stock. You can’t make this stuff up anymore. Spoiler: 58% of Twitter bots voted for him to sell
Sadly, there are many crooks and thieves that are able to play off the emotions of others using popular trends, dog names, etc to set the trap. The last perfect example of peak FOMO is the pump and rug pull of Squid Game Coin (yes the damn Netflix show……)
And for all those who FOMO’d into companies right before Q3 earnings and got smoked (including me), watch this Squid Game inspired meme (top tier post with Pelosi Capital making an appearance- ending is the best part!):
The Metaverse: An Oasis Unlike Any Other
Facebook changing their name to Meta ($MVRS) has been the talk of the town recently. The buzzword, Metaverse, is being said constantly but most don’t understand how far reaching it can become or how influential it has already proven to be.
For instance, in the popular videogame Fortnite, one of the most popular pop artists currently, Ariana Grande, had a virtual concert within the game. The players had to enter into the game at the specific time of the concert to enjoy a free virtual reality showcase of Ariana as their avatar’s glided through the virtual world.
There wasn’t an official news release on how much money she made from the collaboration but Forbes estimated it was a $20 million deal struck with the artist where well over 12 million viewers saw the metaverse concert live.
And if you think, well only famous celebrities can make money in this new digital world, you are sadly mistaken as advertisers have already started to make their way into this new economy.
In the popular kids game, Roblox, companies such as Chipotle have created virtual stores where the Lego-type Roblox characters can come enjoy a burrito.
This isn’t a fad. It’s a way for people to immerse themselves in a virtual world surrounded by games, advertisements, and a community to enjoy it with. It’s an advertiser’s dream come true and a kid in the 1990’s fantasy coming to life right before our eyes.
If you are looking for a intro to Web 3.0 / Metaverse, this newsletter is very well written and easy to digest.
Inflation ISN’T Transitory (Record CPI Print)
If you actually believe one word the Federal Reserve says at this point, this report should make you think twice before taking anything they say remotely seriously. Thanks for the high gas prices and crazy expensive Chipotle bowl, Jerome…..
You can argue if this goes away in the next 6 months or so it was “transitory” but I don’t think a year plus of record inflation for struggling American families is transitory in their eyes.
CNBC Played You (on Evergrande clickbait)
Peak Evergrande search via Google vs S&P 500 chart. Please stop getting click baited by CNBC or even worse panic selling because they are begging you to…
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