He isn't predicting anything, just describing what was already decided
Twitter founder Jack Dorsey weighed in on escalating inflation in the U.S., saying things are going to get considerably worse.
Such a run-up would be a “down-payment” to McEwen’s $5,000 long term prediction.
Cathie Wood made some incredibly unwise investments in Tesla, and to top that all off she predicted a meteoric rise for the company that did not manifest. I take everything she says with a grain of salt.
Michael Burry, on the other hand, seems to have his mind in the right place.
Gasoline prices are up $1.22 from a year ago:S&P has dramatically high valuations, home prices have surged. Goods at Target, Walmart(now Amazon) are comparatively cheap. Gasoline is cheap. But, young people(the ones who are actually working) struggle to afford housing in coastal cities in particular.
So a company that is growing slowly or not at all should be valued at a *higher* multiple than a rapidly growing firm?Cathie Wood also made the argument that PE valuations of 20 made sense with economic growth at 5%. She argued that 1 divided by 5% = 20, whereas if our economy is growing more slowly, like 2-3% per year, then 1 divided by 3% = 33, or 1 over 2% = 50. So, her argument was that slower growth made sense with PE valuations of 30-50. Seemed like an uncommon argument but not crazy.
This would be noteworthy if it didn't crash a year ago.Gasoline prices are up $1.22 from a year ago:
Think of it from a broader market perspective. When you have high general economic growth, there are lots of opportunities for people to chase.So a company that is growing slowly or not at all should be valued at a *higher* multiple than a rapidly growing firm?
Either I'm misunderstanding her position or that is completely backwards and totally nuts!!!!
The current inflation is mostly due to supply chain problems, but demand-pull inflation will also contribute, due to foolish Federal Reserve and government policy.Much of current inflation has to due with supply chain breakdowns, hyperinflation will only hit select goods in such circumstances.
Conversely, hyperinflation will happen this decade, but, you will see it happen in other countries first (Turkey's currency is blowing up, China's renembi is pegged at 6:1 dollars). So I'd say we're well along the way to disaster but not very soon. Other countries will be the canary in the coal mine, if you see them blow up then stock on food and essentials immediately.
Burry is a value investor, and in the lead up to 2007, he was losing money. But his gamble paid off.I would say that both Cathie Wood and Michael Burry have been right on Tesla so far as they both made money on the stock.
Burry was early but his trade was profitable - he was buying put options on the way up and sold out as TSLA crashed from 900 to 550. They don't really have the same time horizon. Michael Burry is not a long term investor. He does find good trades.
The one who was dead wrong about Tesla is Steve Eisman, another guy from the movie "the big short".
The current inflation is mostly due to supply chain problems, but demand-pull inflation will also contribute, due to foolish Federal Reserve and government policy.