Pulse of the Market - October 2021
Nancy Pelosi is now considered the greatest trader of our generation after she YOLOs millions in call options. Does she have insider information? Another wild month in the casino, I mean stock market.
Pelosi Capital: Insider Trading Gone Mainstream
My former House Representative in San Francisco, Nancy Pelosi, amassed over $100 million even though she has been on a “modest” government salary her entire life. How is that even possible? Well, when you sit on several committees that have pertinent information, and use leverage to maximize short term trades, you make millions (through her husband of course!).
Miss Nancy likes to use call options (or leveraged derivates) to capitalize on information only known to her and her comrades in Congress to make millions. For example, lets take the JEDI Contract between Microsoft and Amazon.
Pelosi's Husband Bought Amazon Calls Before Pentagon JEDI Shakeup Sent Shares Soaring
Her amazing stock trading husband, Paul Pelosi, somehow went deep in Amazon calls right before it was announced Microsoft would be losing the $10 billion JEDI cloud computing deal (that Amazon was competing for) which helped skyrocket Amazon’s stock price in the short term.
As usual, the internet stays undefeated with the memes. But in this instance, I am more disgusted seeing these memes given she is literally committing a crime *allegedly* and getting away with it through her husband.
NFTs: A .Com Like Euphoria Masking an Incredible Technology
NFTs are taking the world by storm given their unique place has a curator of art, community, status, and frankly, gambling. It’s one of the first use cases of crypto that is getting average people (who may have dismissed crypto early on) to see the potential of this rapidly evolving technology.
For crypto in general, institutional demand continues to rise (as a noted in several newsletters- see Coinbase) and now is being seen as a hedge against inflation and the Federal Reserve’s monetary policy.
Paul Tudor Jones and I came to the same conclusion on Bitcoin after seeing the FED print a ridiculous amount of money in 2020 (as I wrote in April 2021 conclusion below). His 2 minute CNBC clip about crypto vs gold is a good watch (linked below).
Just like in 2000, if you were at least curious about the internet and its profound impact, you realized the internet would change the world. Be open minded but don’t gamble what you are not willing to lose at least 50% of. Crypto/ NFTs are early into their adoption cycle and a learning experience after all. As such, I have to preach caution once again on the coins given its latest runup (the FOMO is back!!)
You have people buying a picture of a monkey for $1.59 million for something someone bought for less than $5k. If that doesn’t scream bubble, I would like to sell you a stick figure drawing I drew for $500k please (see below for my 1/1 Bubble Boy NFT!)
Bubbles are everywhere, but the euphoria should not allow the incredible shift to Web 3.0, the power of DEFI, and the adoption of crypto to be ignored. As the crypto pumpers like to say, wagmi (we are gonna make it) until these pictures tank 90%+ in value then we are ngmi (never gonna make it). There’s some under 30 crypto lingo for the old timers.
The Fed Got Caught
A day after I called out Dallas Federal Reserve President, Robert Kaplan, for trading, he stepped down. Then Boston Federal Reserve President, Eric Rosengren, resigned after being caught trading millions in tech and airline stocks.
And lastly, the head honcho himself, Jerome Powell, was caught trading millions total stock market ETFs, balanced funds, etc with a huge sale in October 2020 right before the stock market corrected 8%+.
This guy is literally trading around his monetary policies. I have never seen corruption go this deep right under everyone’s noses (as I was screaming it from the rooftop for months).
In corrupt government fashion, after the damage is already done and they got caught, they announced FED officials are banned from trading. Why don’t they ban Nancy and the gang as well while they are at it? Hint: That will never happen as they can just create a trust, add the congressman/ women as a beneficiary, and have a family member make the trades *without their knowledge*.
Update on Evergrande and Inflation
The Chinese real estate conglomerate paid a bond coupon to avoid default last weekend. Almost as if a potential default is not a systemic risk to US markets and all those click bait articles and CNBC segments were for clicks and views 😱 *shocked face*
In May, I wrote about inflation getting out of control given the Fed’s excessive money printing. It never looked like “transitory” inflation to begin with yet CNBC talking heads spoon fed that narrative until gas, food, and other essential product prices rose far enough it couldn’t be ignored. If the FED keeps printing magic money and supply chains are still bottled up, prices will keep rising. End of story