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.
It being on or about the fifth of November, we thought it appropriate to begin with “remember, remember, the fifth of November…” which is the start of a famous poem about the Gunpowder Plot. Though not alone, the face (pun intended) of the plot was Guy Fawkes, whose antics are widely regarded as the source of the term we use today, guy.
Sometimes, it is better to be a little boring. Most of the attention in the electric vehicle space is focused on glitterati: the OEMs that make roadsters that go 0-60 in the blink of an eye, the larger-than-life CEOs that tweet incessantly, you get the idea.
The markets were hit by one figurative hurricane early this year—the COVID-induced bear market of February/March. It happened quickly and the damage, at least in terms of the S&P 500, was quickly repaired. However, not too far on the horizon, conditions are ripe for another storm in the markets, with what is sure to be a rollicking U.S. presidential election. 2020 has seen a record number of named storms and in this quarter’s commentary, Adam Eagleston discusses what we can learn from the various literal and figurative hurricanes that have hit us this year.
