While Elon Musk can certainly be a controversial figure… especially with his Cell phone and Twitter App Opened… he has a way of making successful endeavors.
Not withstanding the above, we find Musk an innovator and certainly not afraid of what critics may say. Here and here and even here in our Newsletter earlier this year we spoke of Musk. With Musk’s announcement of moving to Austin Texas, we likely will be seeing and hearing more from him.
The following chart was just too good to pass up from our friends at Visual Capitalist.
As a reminder, a short seller makes a bet the stock will go down, which usually happens much faster than a stock climbs, by borrowing the stock from some one, selling it with the intent of buying it back at a lower price. Two big catches with this technique are that a short sellers losses are unlimited as a stock may grow to the sky and if too many shorts end up on the same company, a short squeeze or unnecessary and unwarranted run up in the stock as everyone buys to cover may occur….. trampling the Shorts !
Have a Great “Musk Shakes the Shorts” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
Money Versus Markets from Our Friends at Visual Capitalist … Quadrillion Notional Value
The most interesting part of this chart from our friends at Visual Capitalist in our opinion is the synthetic versus notional value of assets… What?
Ok… so we laid some Wall Street Gibberish on you…
All of this is near the end of the chart…
Derivatives …. A synthetic product is basically a product of some type that allows you to use a small amount of money to control a larger amount of assets… most importantly for a defined period of time…..
Used correctly, most of these types of products are for lowering risk, also called hedging…
Used aggressively, these products are speculative and can cause harm to an investors portfolio….
Notional or real value of the assets held by Derivatives are currently a Quadrillion … not a term used frequently… such the interest…
It’s a long chart, but very informative and interesting… take a moment to digest… think it worth it!
Hope you enjoyed !
Have a Great “Quadrillion Notional Value” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
-96.808100
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Posted in Chart, Investing/Financial Planning, Market Comments
Tagged Derivatives, Notional, Synthetic, Visual Capitalist