{"id":65080,"date":"2021-02-13T02:15:19","date_gmt":"2021-02-13T10:15:19","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=65080"},"modified":"2021-02-16T05:50:24","modified_gmt":"2021-02-16T13:50:24","slug":"black-coffee-13-feb-2020","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id65080-black-coffee-13-feb-2020.html","title":{"rendered":"Black Coffee: It’s a Mad, Mad, Mad, Mad World"},"content":{"rendered":"

\"\"It’s time to sit back, relax and enjoy a little joe …<\/em><\/p>\n

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.<\/p>\n

I hope everybody had an enjoyable week. Without further ado, let’s get right to this week’s commentary …<\/p>\n

Stock prices have reached what looks like a permanently high plateau.<\/em><\/p><\/blockquote>\n

— Irving Fisher, Yale economist, 1929<\/strong><\/p>\n

When you’re living in a mad world, sanity is a liability.<\/em><\/p><\/blockquote>\n

— Anthony Burgess<\/strong><\/p>\n

Credits and Debits<\/strong><\/p>\n

Debit:<\/strong><\/span> Did you see this? According to Yahoo!Finance<\/em>, a 12-year-old South Korean boy has become a “new retail trading icon” after earning 43% returns in roughly eight months on an initial investment of $22,400. No, really<\/a>. The boy says he dreams of becoming the next Warren Buffett. Who knows; it could happen. Then again, if the Fed keeps printing the dollar into oblivion, we’re all eventually going to be billionaires — whether we play the market or not.<\/p>\n

Credit:<\/strong><\/span> Speaking of stock trading, financial analyst Sven Henrich says that the market “is repeating the same behavior as it did last year before the crash. Except this year it’s even more disconnected<\/a> from technicals and fundamentals.” For example, market cap to GDP is now at 194.9% – – versus 158% in February 2020, and 150% in 2000. Yikes. I’d ask our 12-year-old “trading icon” what he thinks about this, but I suspect his idea of a market cap is a ‘Dow 30,000’ hat.<\/p>\n

\n

“I’ve never seen such confusion in markets in my 3 week career on wall street” -12 year old hedge fund manager<\/p>\n

Stalingrad & Poorski (@Stalingrad_Poor) February 9, 2021<\/a><\/p><\/blockquote>\n