Financial news versus political news....trade on this inefficiency.....

[-lowcountrydawg]

Generally a pretty small percentage of the population tunes in day to day on financial news, but they cling to political news, especially in the Trump era with supercharged opinions and divisiveness.

What is happening right now is the merger of political and financial news, because the markets are lazer-focused on how policy may or may not affect public companies and the economy in general.

This is leading to an opportunity, where investors (especially retail investors) are likely over-focused on how politics will effect markets. Folks typically not tuned into every financial datapoint are listening to their polictical news sources focus on the market. Add to that the famous bias coming from media....and it contributes to this dynamic. Even CNBC, which to be sure leans left but at least tries to be objective....is screaming as they see the perception of Trump policy leading to a selloff.

Put all this together, along with the likelihood that Trump's bark on tariffs will likely exceed his bite (The Trump put)......buy now as a "fade the media" strategy. Tesla especially.....as you can't help but believe the Musk factor has impacted that stock.

 

[willdup]

Generally a pretty small percentage of the population tunes in day to day on financial news, but they cling to political news, especially in the Trump era with supercharged opinions and divisiveness.

What is happening right now is the merger of political and financial news, because the markets are lazer-focused on how policy may or may not affect public companies and the economy in general.

This is leading to an opportunity, where investors (especially retail investors) are likely over-focused on how politics will effect markets. Folks typically not tuned into every financial datapoint are listening to their polictical news sources focus on the market. Add to that the famous bias coming from media....and it contributes to this dynamic. Even CNBC, which to be sure leans left but at least tries to be objective....is screaming as they see the perception of Trump policy leading to a selloff.

Put all this together, along with the likelihood that Trump's bark on tariffs will likely exceed his bite (The Trump put)......buy now as a "fade the media" strategy. Tesla especially.....as you can't help but believe the Musk factor has impacted that stock.

Yikes. Dispensing investment advice now?

Even after the recent selloff, there are plenty of reasons to worry that Tesla is still wildly overvalued that have nothing to do with Elon’s recent role in government spending cuts.

Tesla could climb from here, but I think it’s more likely that the massive gap between hype and financial fundamentals continues to narrow.

But don’t listen to me. Do your own research.

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www.reuters.com

 

[-lowcountrydawg]

Yikes. Dispensing investment advice now?

Even after the recent selloff, there are plenty of reasons to worry that Tesla is still wildly overvalued that have nothing to do with Elon’s recent role in government spending cuts.

Tesla could climb from here, but I think it’s more likely that the massive gap between hype and financial fundamentals continues to narrow.

But don’t listen to me. Do your own research.

Loading…

www.reuters.com

I don’t disagree based on fundamentals. But I do buy into markets over or under-reacting to stuff that has nothing to do with fundamentals.

Whether or not Tesla was overvalued to begin with is a legit debate. But for those that liked it in December…..nothing has happened in reality since that time that would justify a 50 percent haircut.

It was a similar situation in Covid. I am watching Jim Cramer say that he isn’t sure whether or not anyone would go to a restaurant ever again…..knowing all the while that if my local Home Team BBQ on SI was open…..it would be bursting at the seams 5 deep at the bar.

There was a political and regional divide in terms of how the country viewed those kinds of things. Because Home Team isn’t a public company, I bought BLMN and EAT. Outback and Chilis….because they are generally located in the sunbelt and they were priced as if they were outside the Wuhan wet market. They tripled in 6 months.

Again - it is a play on the unsusual convergence of financial and political news. If you believe Trump is gonna tank the economy you go to treasuries. If not, the door is open because the market is pricing in too much noise.

 

[WyoDawg307]

Generally a pretty small percentage of the population tunes in day to day on financial news, but they cling to political news, especially in the Trump era with supercharged opinions and divisiveness.

What is happening right now is the merger of political and financial news, because the markets are lazer-focused on how policy may or may not affect public companies and the economy in general.

This is leading to an opportunity, where investors (especially retail investors) are likely over-focused on how politics will effect markets. Folks typically not tuned into every financial datapoint are listening to their polictical news sources focus on the market. Add to that the famous bias coming from media....and it contributes to this dynamic. Even CNBC, which to be sure leans left but at least tries to be objective....is screaming as they see the perception of Trump policy leading to a selloff.

Put all this together, along with the likelihood that Trump's bark on tariffs will likely exceed his bite (The Trump put)......buy now as a "fade the media" strategy. Tesla especially.....as you can't help but believe the Musk factor has impacted that stock.

I have found that most of the financial news is mostly hot air and is about as trustworthy as the non financial news. Not to mention the media is cheering on a recession - because Orange Man. The left believes this is the way to attack Trump because all of their other "hot buttons" aren't moving the needle on his approval rating.
A lot of noise out of the controlled US corporate media as well as the UK (Reuters) and the EU that hate his new Ukraine policy.

 

[-lowcountrydawg]

I have found that most of the financial news is mostly hot air and is about as trustworthy as the non financial news. Not to mention the media is cheering on a recession - because Orange Man. The left believes this is the way to attack Trump because all of their other "hot buttons" aren't moving the needle on his approval rating.
A lot of noise out of the controlled US corporate media as well as the UK (Reuters) and the EU that hate his new Ukraine policy.

All the more reason to hop in now while the noise is priced in.