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Stock Market 2021

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You’ll just be paying through inflation rather than interest costs. Don’t forget that banks set the cost of borrowing on credit risk, they’ll still make their margin. As we’ve seen, borrowing costs are rising.
 
Just read a comment in "The Little Book of Market Wizards" that says if the market is rising despite negative sentiments, then the market is indeed strong.
Interesting idea.

On the topic of redundancies, my daughter and her boyfriend are both accountants. They have job opportunities coming out of their ears!
 
Musk now the richest person on earth. TSLA hits $800. No excess heat in the markets at all.
 
^^^ Impressive for someone that can't turn a profit on the actual product they make. Green credits is another story. I still fail to see how a 2 tonne car full of batteries generally carrying 1 person around is green but maybe that's me. If we were fully nuclear power generation then I'd buy that argument.

Share prices eventually come back to... i) can you make a profit selling your product, and ii) can you increase that over time because more people will be buying your product.

My option is by they time they reach i) the other manufacturers will be eating away at ii)
 
The thing is, when Tesla starts crumbling, all the ETFs will come down too. Scary stuff.
 
I've been a bear on Tesla for 3 years now and have to eat my words - though I suspect I will be right at some point. Have to hand it to Musk, he is a financial engineering genius.
But...when the other OEMs no longer need to buy credits, that's when the profitability of selling cars gets exposed as swimmng naked, and I cannot believe a Tesla will have any better margins than any upcoming German EV to the extent to justify the exorbitant share price. However their investors have handed them tons of cash so that will see them competitive for quite a while yet.
 
PS - Bitcoin topped $40,000 today, up from $30,000 earlier in the week. wtaf.

(I'm waiting for the implosion, must be imminent following the economics of PT Barnum ...shurely! )
 
Rana said:
I've been a bear on Tesla for 3 years now and have to eat my words - though I suspect I will be right at some point. Have to hand it to Musk, he is a financial engineering genius.
But...when the other OEMs no longer need to buy credits, that's when the profitability of selling cars gets exposed as swimmng naked, and I cannot believe a Tesla will have any better margins than any upcoming German EV to the extent to justify the exorbitant share price. However their investors have handed them tons of cash so that will see them competitive for quite a while yet.
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Just seen it closed up nearly 8% today at $816. P/E is 1560. Where are the profits expected to come from and when??!!

A friend has a Tesla 3. He says the build is woeful compared with his previous Audi. He had a very minor prang, it cost £8K to fix, he thought it would be under a grand.
 
andyoz said:
I mean the guy has always impressed me. You can't take that away from him!
The world needs these crazy thinkers.
I just hope people late to the party don't lose their savings.
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A very interesting character. Podcasts with JR should they interest you.


 
^^ That looks great. Imagine when it goes wrong!

I’m feeling quite nervous about the markets. Pricing appears to assume there will be no bumps in the road with C19. Bought some more GDGB on the drop first thing. Also happy to hold some cash ATM.
 
Destinations outside Europe are unlikely to get vaccination levels high enough to allow much tourism until the end of this year, so TUI has some serious threats
 
PCT and Vanguard FTSE mentioned further up the thread are off to a good start this week - thank you guys !
 
davidsrsb said:
Destinations outside Europe are unlikely to get vaccination levels high enough to allow much tourism until the end of this year, so TUI has some serious threats
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Yes, it's a mid to long term bet that one. I'll be taking the 'cheap' right issue shares on though. I essentially get to double down at €1.07 each compared to their recent €5 price so I'll take that bet.
 
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