Tag: retail investors

Investors Will Be Left Holding The Bag When The SPAC Party Ends

Investors Will Be Left Holding The Bag When The SPAC Party Ends

SPACs simply are not investor-friendly. Never mind that SPAC sponsors collect a 20% fee. Most of the 2020-2021 SPAC class consists of CEOs that are not public market-ready nor are their companies. Most SPAC companies are venture-stage companies masquerading as seasoned public companies. Many are pre-revenue or at the early stages of revenue generation (profits … Continue reading Investors Will Be Left Holding The Bag When The SPAC Party Ends

Where Is The Gold Rally?

Where Is The Gold Rally?

Gold prices ought to have climbed higher given the amount of money printing that took place in 2020 and that is likely to continue. What happened? Additional debt-funded "stimulus", QE and accompanying asset inflation should have pushed gold prices higher. After all, gold is a safe haven. What gives? (view a chart of the spot … Continue reading Where Is The Gold Rally?

The Retail Trading Swarm Continues To Grow

The Retail Trading Swarm Continues To Grow

Retail trading activity continued to climb in December. We used metrics from InteractiveBrokers (IBKR) as a proxy. Daily average trades up 198% in December year-over-year.Client equity up 66% year-over-year.Client margin loan balances up 26% year-over-year.Client credit balances up 34% year-over-year. Client accounts up 56% year-over-year (full press release here. See full metrics here). https://soundcloud.com/ceorater

The Electric Vehicle Bubble

The Electric Vehicle Bubble

The Electric Vehicle ("EV") valuation bubble is one of many asset bubbles enabled by dovish fiscal and monetary policy and pursued by speculators (both retail traders AND large asset managers such as Fidelity). The EV bubble seems to be largely driven by the presence of a large total addressable market ("TAM") regardless of whether it … Continue reading The Electric Vehicle Bubble