When I set out over a year ago to just once a week highlight one element of absurdity (because it is absurdity which often leads to asymmetry and thus profits) on this ball of dirt we call home, it was inevitable that I wouldn’t have much trouble in finding things to jeer and laugh at.
- Hedge Fund of funds Business Keeps Dying Every Year
- Baupost Letter Points To Concern Over Risk Parity, Systematic Strategies During Crisis
- AI Hedge Fund Robots Beating Their Human Masters
With the torrent of rules and regulations, manipulations, and interventions that fill statute books each day… and with governments and central bankers doing what they do best (stupid things), it was a statistical certainty that I would reach a day when I looked around and finding far too much to show you my head would simply explode. And this week that day arrived…
David Einhorn's Greenlight Capital returned -2.9% in the second quarter of 2021 compared to 8.5% for the S&P 500. According to a copy of the fund's letter, which ValueWalk has reviewed, longs contributed 5.2% in the quarter while short positions detracted 4.6%. Q2 2021 hedge fund letters, conferences and more Macro positions detracted 3.3% from Read More
And so… with an exploded head I’m useless to you.
So instead, I figured I’d go back and review all the voting on the World Out of Whack posts I’ve done. And by George, there are a sh*tload. June of 2016 was when the fun began. I don’t know if I’ll get through them all but you never know unless you start so here’s the first three.
1. Bat isht crazy real estate
Vancouver real estate. Investors thought it was such a great idea… except you. Cos you’re smart. Well done!
Now a year on, Vancouverites would rather weld their children together with molten metal than dive in and buy.
There’s more, though. I threw some crumbs. Now, don’t say I don’t love you:
“Side note: While the focus today is on overvalued RE markets, as an investor I can’t help myself from pointing out that with a P/E ratio of just 9x, Hong Kong’s equity markets are today the cheapest in the world, with the Hang Seng Index trading at the biggest discount to global shares in 15 years.
As a reference point consider that most major stock markets typically trade at a P/E of between 15-20x, so we’re looking at an equity market some 40-50% of its highs and an overvalued real estate market at the same time.
Here’s that undervalued market I was talking about:
I then mentioned those fiendish orientals… and why you should buy Bitcoin. This is a game not just for round eyes in Silicon Valley to play:
2. Next up was just after Brexit
…and we asked you:
Crikey… you lot are sharp. Certainly French elections registered as a crisis in confidence with the first time that an incumbent never even made it to the runoffs. Ha! Take that Hollande… and put it in your pipe and smoke it.
3. And then in the third issue of WOW, we covered global bond markets
We asked the question:
So that was published on 29th June.
Though gold is about where it was in June of last year, this question will only be answered in the next crisis… and I’m willing to put some shiny ones on you being right once again because I promise you this: In the next crisis, gold is likely to fair much better than trying to conjugate the modern day version of Julius Caesar’s paper.
And really… if there is one thing I’d like to get across, it is encapsulated in this wonderful chart below. Because once you realise this, you’ll begin to start thinking the right way:
Oh, and if you’d like to try out a shiny Insider membership, where we tackle these markets and identifying and investing in major themes and trends unfolding, then I’d welcome you to join the Insider community today.
After all, having a small amount of information with no guidance as to how to use it is as pointless as a blunt stick.
- Access to the entire archives so you can binge read
- Monthly live webinars where I answer member questions…. recorded for your pleasure to watch at your leisure
- Special alerts
- Weekly Insider newsletter
- Sector specific reports
- Access to the Insider community forum… and thus access to some frighteningly sharp people
And if you come take a look and it’s not for you, we’ll gladly give your money back within 30 days.
After all, none of us want something that’s not beneficial… otherwise we’d all just sign up for a beautiful combination of state run education, Wall Street products and mainstream media. Oh, wait!
I hope to see you on the other side.
“Never attribute to malice, that which can be reasonably explained by stupidity.” — Spider Robinson
Article by Capitalist Exploits