Yeah looks like monday could be bad with the buffet anounncement and the fed statement just after friday close. Here is part of it: The Fed noted that stock prices had “swung widely,” and said other assets could be in for lower prices.
“Asset prices remain vulnerable to significant declines should the pandemic worsen, the economic fallout prove more adverse or financial system strains re-emerge,” the Fed warned.
“The severe disruptions in economic activity following the outbreak could reduce house prices by bringing down household incomes and restricting access to mortgage credit,” the report said, though a decline in supply could limit that effect.
As for banks i would still like to get a grasp of the size of defaults that we re gonna see before i invest, current write offs dont seem to be adequate.
Also gonna look at swiss banks first.
In other new saudis sovereign fund is trying to seek a 10bio margin loan and pledge a part of their softbank stake.....
Also they invested 300mio in FB, BA and C.
How on earth does anybody still take softbank serious? biggest pile of shit companies in one fund that i ve ever seen..
And this is what worries me i dont think i ve ever seen a recession/depression where shit companies were still flying high and atm we got more of them on the market then ever before maybe with only the dot.com bubble being worse
Everything that promises growth and or claims to be tech is just overvalued as fuck. I also believe if one of the retail darlings (Bynd/Tesla/Carvana/Etsy/Shop/W) breaks down or goes to trading at a reasonable price fear might spread in the markets. Not saying all of them are useless but they are trading at levels where even if they capture most of the Tam there is still no room for growth left.
But as long as softbank and people like Kathie wood are out there defnding this absolute BS we might see this go on for some time. I just refuse to belive that we re at a market low when fundamentally unprofitable companies who have flawed BMs are trading at astronomical multiples cause thats usually not how a market low looks.
Question is how long will it take for markets to realize that certain BMs are gonna stay unprofitable no matter how big the scale/ How much longer will investors be okay to exchange profits for growth? Especially if we re talking companies that are 10 years and older.
Again one simple look softbanks vision fund and one should easily see that they did not care about due diligence when valuing their Investments. All they cared about was growth and hype and the rational that they only needed to score one unicorn out of all your investments and you d be fine. It s just plane stupid especially when you end up valuing companies like we work at 40 bio even more so when profitable competition with the same rental space available for rent trades at a market cap of 6(if i remember correctly). Same BM same sector just one claimed to be a tech company and got 5 times the valuation of the other one.
Call me a hater but i do think that will see a VC or a hot silicon valley company go bust before we reach the bottom.
Edit: Funny and true:
https://twitter.com/armadillo_rick/status/1261741555964149760