Don’t Believe The Hype

Isn’t it funny how the business media frames the things which they want you to hear?

Recent examples include;

when Bitcoin was falling below $30,000 the headline news was about a ‘death cross’ (when the 50 day moving average moves below its 200 day MA) suggesting lower prices. No news lately since Bitcoin bounced 50%….

and then there was Robinhood shares doubling in 1 day from $40 to $85. No news lately that they have halved again back to $44…..

Between March and May everyone suddenly knew that Lumber doubled in price from $800 to $1,700…..do they know that it has fallen 75% to $470 since then?……

and a host of “hot” IPO’s are no longer being reported on or about…..

Take Bumble and Latitude Financial for example, both are down 30% from their opening print, U.S. BNPL stock Affirm is down 55% from its peak and a host of others.

There is merit avoiding or questioning the consensus and some skill required to filter the noise, whilst there isn’t a substitute to doing your research and analysis.

August 20, 2021

by Rob Zdravevski

rob@karriasset.com.au