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.
Warren Buffett, Back of the Napkin Market Valuation Tracker … Part 1 in Market Valuation Review Series
With on-line investment animal spirits accelerating in some of their antic spirits, we thought it a good time for a calmer, longer term view of some high level market valuation views.
Oh … have not heard of the animal spirits? …. Let me digress for just a minute. A collective group of folks are ganging up on companies that have large short interest. Short Interest? This means company’s who’s stocks have large amounts of investors betting the company will go bankrupt or at least eventually lose value. As we say often, when everyone is on one side of the trade/theory/belief, this can cause vulnerability on the opposite side. When a group gets together and buys in mass, a largely shorted company stock, it can cause a short squeeze, similar to the afore mentioned Tesla…
You may say “So What” and that is fair, but this can cause other areas of the market to become frothy (which we have been speaking of before) and it also speaks to the recklessness of a investor behaviors and their disregard for any type of safety.
Buffett VERY High Level Market Indicator Flashing Caution
Warren Buffett aka the Oracle of Omaha due to his investing prowess, rarely gives any of his broad market comments and always qualifies that he has no idea where the markets will go… as do we!
BUT,
Price is what you pay, Value is what we get!
That’s an all time high/expensive aka NOT CHEAP- just saying!
Let’s be careful out there! Anyone remember what cop show this quote was from?
Have a Great “Buffett Indicator Flashing Red” 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
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Posted in General Financial Planning, Investing/Financial Planning, Market Comments, Retirement Planning
Tagged Advisor Perspectives, Elon Musk, GDP to SP 500, Tesla, Warren Buffet, Warren Buffett