Having been in the money management seat during the speculative manias of the late 1997-2000 and 2005-08, I did not expect to see a third even more extreme episode within the same 20-year period. And yet, here we are. Madness reigns once more. On the upside, the opportunities in the inevitable next implosion promise to be as great or potentially even greater than the 50 to 80% liquidation sales that presented in the last two bear markets. So, that’s something exciting to prepare for and look forward to. In the meantime, as Chanos observes: “Right now people are doing really dumb things with their money.”
Kynikos Founder & President Jim Chanos says people are doing really dumb things with their money, driving up share prices of companies based on narratives that are too good to be true. He also discusses his “painful” short in Tesla Inc. before the electric vehicle maker is added to the S&P 500, as well as his bet against IBM, which is his highest conviction short. He adds the Biden administration will not be anti-markets. Here is a direct video link.
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