Manias Beget More Manias

Monday Dec 28 2020

Now one can invest in art holding for several years to cash in on the art mania

https://www.masterworks.io/about/how-it-works

 

a similar investment srategy is under way for collectible exotic cars.

https://www.forbes.com/sites/donnafuscaldo/2019/01/16/the-app-that-lets-you-buys-shares-of-luxury-cars-just-opened-a-store/

 

these would have been great ideas in 2003 and late 2009 but not now. 

An article on page B 1 today notes margin Debt Reaches a Record - $722  billioin. 

One fellow bought  $23,000 in call options on Tesla and made $2 Million. He has now turned the options in to Tesla shares and  SOLD HIS HOME TO BUY MORE TESLA SHARES!

29 million option contracts changed hands EACH DAY    this year, an increase of 48% from  2019.

Mary Roberts hit big with Tesla and is open to borrowinig money to buy more TSLA. Clearly Mary has not experienced a margin call.  She concludes this is what rich people do.

Not at this point in the market. This is all a reminder of the famous story of a  shoe shine boy giving a wealth investor a stock tip in the late 1920s. The investor realized that was a clue the market was topping and sold out.

The S & P is up  66% from its low and there is widespread FOMO Fear of Missing out.