We looked at 2020 through the lens of 1999, specifically its worst music. Strangely, while the music from 1999 was dreadful, the films released that year were truly outstanding. This first month of 2021 reminded us of several classic films from 1999. With that, let’s Go (underrated cult classic).
What is clear is that this year has been widely regarded “unprecedented”, an overused term Recently, we have seen many instances of “unprecedented” behavior and this last two weeks of market trading is another chapter in this unprecedented time. In order to enjoy this “meal of information” we are going to now “set the table,” and try to explain what is happening in the stock market.
One of the books on our recent reading list was a fantastic biography on Winston Churchill. A quote of his we use often is, “You will never reach your destination if you stop and throw stones at every dog that barks.” Recently, dogs, so to speak, have been barking.
In September, 2020, we initially presented our thesis on Lithium Americas (NYSE: LAC), which was on sale thanks to Battery Day. Much has changed with the story, punctuated by the Bureau of Land Management (BLM) approval of LAC’s Thacker Pass project in Nevada
While Will and Adam may, a lot of people have been misusing the term lately. We discuss how all stocks are equal, though some are more equal than others, where we see (and do not see) inflation, and what that means for equities, especially small caps, and bonds. We close with some perspective on what has been driving the outperformance in certain frothy areas of the market, why it may continue, and what risks are being overlooked.
Though Neil DeGrasse Tyson would reprimand us, probably in a condescending manner, about ascribing significance to an arbitrary day commemorating one revolution of the earth around the sun, people, in general, put stock in the “new year.” The level of excitement associated with the arrival of 2021, closing the books on a year that will certainly live in infamy, is rivaled, at least in my lifetime, only by the mania associated with the end of 1999 as we stared into a new millennium.
Like the Electric Light Orchestra, Will and Adam have no answer for what is happening right now, but a lot of questions. They cover similarities and differences between now and the late 1990s, discuss valuation for various parts of the market, where they see relatively unattractive risk versus reward, and delve into specifics on a few names in the news.
The film: Class Action Park, demonstrates the sometimes-tragic consequences of not properly evaluating risk. . Located in New Jersey (everything is legal in New Jersey, per Hamilton), the park was the vision of a Wall Street veteran, Gene Mulvihill, whose firm was suspended by the SEC for fraud.
Imbed’s nanoparticles were found to inactivate or kill about 99.9% of SARS-Cov-2 viruses in an experimental study run by Virology Research Services of London, according to a report seen by Bloomberg. To be sure, those results came from a study in a controlled lab and have not yet been replicated in a follow-on or human trial.
(November, 24, 2020) Will Brown and Adam Eagleston in the same room…drinking while recording a podcast. What could possibly go wrong? Apparently, everything. Listen to the two echo one another’s comments (literally) on election fallout and the widening chasm between economic reality and valuations in certain parts of the market. Will and Adam experienced technical difficulties in the recording of this podcast—we apologize for the sound quality.
