Over the past few weeks, we have been consuming more and more content surrounding the US market.
And through that too, we finally caught up with the ARK fund and all the hype around it. Prior to this, we have heard of them, but did not really pay attention to why they were so popular.
The ARK fund is probably the best performing fund manager now, and even their worst performing fund still returned over 70+% in returns this year. That’s mad, especially if you compare the returns vs the SP500 or vs Bershire.
And perhaps because of that, everyone in the market in looking at what they are buying, and perhaps also following most of their purchases.
On top of that, there is an EV stock hype now, with every investors around the world snatching up EV related stocks especially those from China.
It seems that this has probably led to a lot of pump and dump in the market, with price moving 20-30% a day.
Here’s a look at some drastic share price movements:
And then there are news of Slack potentially getting acquired by Salesforce, sending the stock up 37% in a day.
It seemed like there is a lot of big drastic share price movement in the US market, and it can be a black hole to be sucked into.
There are also a lot of financial youtubers giving advices on stocks that can potentially 5-10x.
See this for example:
A day after the video was uploaded, the stock he recommended went up by 23% in a day, with after market trading at 11%.
It seems as though there are a lot of money moving around the market, pushing up share prices, and that people are getting very very optimistic about the market – and they are just investing in whatever that comes their way.
The CNN fear and greed index is also now at extreme greed, with the market pricing in the best possible returns.
It seems as though everyone is dreaming of getting the 10-20% daily gain stocks, and just throwing whatever money they have into the market.
To be honest, we are also feeling the fomo, watching prices of these hot stocks going up and wanting to jump onto the bandwagon too.
While some of these companies are potentially good company, we are mindful about the euphoric state of the market now, with stock prices exploding through the roof.
Where there is a high stock rally, it will be followed by a pullback. And during this time, we are slowly reading up and researching on some of these new companies we’ve come across, and to deploy our funds in tranches should the opportunity comes.
Other than stocks, there is also a resurgence of cyptocurrency which happened over the last 2 weeks:
Bitcoin has returned to their price levels 3 years ago, and altcoins like XRP and ETH are also rallying over the past 2 months.
Similarly, the greed index for crypto is at an extreme level:
For readers who are looking to jump into the bandwagon now, for both US and crypto, I’d advise against in as the prices are probably a bit too high now. I wouldnt be surprise to see some market pull back over the next few weeks, but anything can happen.
If you have managed to deploy some funds earlier this month or last month, congrats and enjoy the ride! Good luck and happy hunting.
Counters on our watch list:
Happy hunting and happy investing!
Also Read: Our New Investment Thesis