Is There A Disconnect Between The Reality and The Stock Market?

Investing can be fun, but it can also be bloody scary. I guess it all comes down to your temperament when bad things hit the fan. For example, I notice that I tend to sell a stock too early. By selling a stock too early, I had experienced missing out on huge gains. Also, whenever I get greedy in playing stock options, I would get slaughtered. Sometimes, the stock I invest in heavily would go way down. I tend to get slaughter when I buy puts of stock in thinking that stock would go down.

2020 is the year in which I think the stock market is acting incredibly weird. Out of nowhere, the COVID-19 pandemic spreads throughout the globe, causing the weirdness of the stock market to go on steroids. For example, in March of 2020, everything was going way down. In November of 2020, everything seems to be skyrocketed and unstoppable. Now, in December, somehow, I feel the stock market is somewhat sluggish. Still, the weirdness has yet to go away because I notice that a lot of retail investors push the valuation of newly minted SPACs out of proportion. For example, QuantumScape won’t produce solid-state batteries until 2024, and yet the market cap for this company is now above 20 billion dollars.

I feel like we’re revisiting 1999 when the Dot-com bubble burst. Nonetheless, this time I think it’s somewhat different since many SPACs are trying to merge with private companies that do have decent revenues. There always will be exceptions, and Nikola is one of these exceptions. Nikola has yet to produce a functional vehicle for the mass, but the retail investors at one point pushed Nikola stock over the moon. In September of 2020, a short seller known as Hindenburg Research targeted Nikola with a ghastly bashing report and got Nikola’s founder, Trevor Milton, fired. Nikola stock is now plunging steadily down.

As we speak, the interest rates are all-time low, the gold price is way high (around $1,800 plus), and the COVID-19 pandemic is still raging. President Trump is about to step down to allow president elected Biden to take over the administration in 2021. The dollar is slipping in strength. Unemployment is way high! Parts of the United States are in a lockdown state so people could have a social distance to fight the pandemic. Vaccines that could take on the COVID-19 pandemic is about to roll out soon. Things seem to be in limbo, and it could get worse. Somehow, the stock market is shooting way up! Is there a disconnect?

In the video right after the break, Deadnsyde Youtuber mentions that MicroStrategy’s stock price plunged so hard in 1999 might had been the reason that the Dot-com bubble popped in the first place. The surging of unfounded stock valuations of today’s stocks could also be the catalyst in which it may take only one over-valuated, well known stock such as Tesla to pop that could lead the bubble of today’s stock market to pop hard.

What do you think?

Toyota Heats Up The Race To Electrification

Tesla is still leading the way to electrification. Nio and other well known Chinese electric car makers are revving up their effort in competing both against Tesla and the old-school Internal Combustion Engine car manufacturers. Since electrification requires fewer moving parts, the cars should be less complicated to produce and streamline the supply chain — but there are limits still in improving the electrification process. One of such limits is the battery range. Another is the battery’s not so robust recharge cycle amount before the degradation of a battery begins to take place when every time it gets charged up.

No worry though, I think Tesla is doing its best to improve these limits. Lately, Nio upgraded 75 kWh battery technology to 100 kWh, and this means Nio’s car owners now can either choose to use the old tech battery or upgrade to a newer one which is the 100 kWh. The 100 kWh battery allows Nio cars to have a better mileage range. Nio’s 100 kWh battery allows Nio cars, depending on the vehicle sizes, to travel up to 615 km (382 miles) per charge. Other EV (Electrical Vehicle) makers are not idling by either because they’re too improving the battery tech and getting rid of more limits in the electrification process.

Besides improving the battery tech, sometimes it’s also better to reinvent the wheel, and so other EV innovators are coming up with ways of reinventing the whole EV battery tech altogether. Instead of relying on the common lithium-ion battery tech which relies on a liquid electrolytic solution, some EV innovators are hard at work in pushing out solid-state battery tech which gives a better recharged time. For example, QuantumScape — which went public recently through a SPAC (Special Purpose Acquisition Company) merger — is promising to push out solid-state battery tech which allows an EV battery to be recharged about 80% but it takes only 15 minutes to do so. QuantumScape mentioned that they will begin the manufacturing process around 2024 to get this tech onto the market — which is four years from now.

Here I thought QuantumScape is already a game-changer, then suddenly Toyota announces that they will release an EV in 2021 with a solid-state battery tech that allows the vehicle to be fully recharged within 10 minutes. I think the age of electrification is now heating up and ready to go much farther in terms of overtaking the traditional ICE makers fast. Check out a cool video right after the break where Toyota boasts about their electrification process of Lexus cars in the near future.

Can Tesla Backflow The Power Grid In The Near Future?

Can a self-driving car be useful in the aspect of becoming a backflow of power to a grid solution? In the video right after the break, the duo presenters like to think so as they profess Tesla could have huge fleets of robotaxi cars frequently charging up the grid and earning Tesla the bucks on the side. In such a scenario, Tesla could be doing both things such as selling extremely expensive cars to the rich while providing robotaxi cars to the everyday people while earning real money on the side as these robotaxi cars would charge up the grid when idling. What do you think?

GZERO’s Discussion on The Presidential Election of 2020 While The Whole Thing Is Actually Happening And Underway

No one who is under the sun, a citizen of the United States or not, could ignore the United States’ presidential election of 2020 because it’s so polarized and contentious. Check out GZERO video right after the break on the discussion of what is going on while the presidential election (2020) is still underway.

What Will Happen After COVID-19 Pandemic Goes Away?

Although COVID-19 is still running rampant in the West, especially in the United States, I think when the dust is settling, everything will be amazing again. Why am I so positive like this even though we don’t even yet have a mass vaccination for the COVID-19 pandemic? Just let’s say I believe in the effects of human nature, and certain effects of human nature will never change even if the world is going to end tomorrow!

Right now, people are not going to movie theaters, eating out, shopping at luxurious malls, and whatnot, but believe me I think when COVID-19 is over — you can believe that people will do all of that and even more than they have had ever done in their entire life! I think the feelings of being pampered and served are so amazing that people want to feel something like that again! After all, they are being cooped up indoors for so long during the pandemic — once COVID-19 is gone — isn’t it obvious that there will be a revenge of massive consumerism on the service sector?

Currently, malls and other public physical consumerism/service spaces are not being favored by everyone for obvious reasons — DUH! — not getting infected by COVID-19… So, let me tell you why am I being Mr. Obvious(!) — well, let’s say it’s common sense folks! Let me ask you this, do you want to go out and having a fun dinner with your best friends in various delicious restaurants that you used to go out before COVID-19? I would! So, for me being optimistic about how things would return to normal or things would turn out to be even better than how things were before the whole COVID-19 thing is rather Mr. Obvious(!)…

One small problem though! I think my prediction could be a little off from the bulls-eye because of the negative effects of the COVID-19 aftermath. Although we’re not out of the wood yet and I still could imagine that the people — who are losing jobs due to the massive shutdown of various restaurants and other service businesses — may not be able to get back into the same job career that they had enjoyed before the COVID-19 pandemic. Companies that are being badly affected by COVID-19 may not be able to survive even if COVID-19 is going away. Many retail stores may have to file for bankruptcy! Survivable companies may have to employ more robots and automation to recuperate the costs that they lost during the COVID-19 pandemic, thus these companies may hire fewer human employees.

The negative effects of the COVID-19 aftermath could be so huge that it could push down the market prices for unfavorable real estate areas. For example, several real estate areas could see people walk away from their mortgage payments since they could not afford the mortgage payments any longer for not having to be able to find a new job. When the real estate sector turns negative — depending on how bad it could become — it could also affect the businesses in such neighborhoods. Local businesses could see a huge loss in revenues. It’s like a chain of effects or chain of reactions, and the negativities could multiply throughout the economy.

Nonetheless, I feel that the economy is a strange beast because it could contain both the negatives and the positives all at the same time. I could see a scenario of people will go hungry and yet some people go out and spend money like crazy to make up for the time that they were forced to be indoor for so long during the COVID-19 pandemic. Perhaps, we could see the unbalance of the income quality thus we could have huge inequality in income after the COVID-19 is going away. Some people will be able to do more and enjoy their life more during the COVID-19 aftermath, and other people will have to go hungry and become homeless. I just pray that everyone would be able to do better and feel better after this horrendous COVID-19 pandemic — but we all know praying might not be enough. Let’s hope I could be so wrong, and everything will be super-duper after the COVID-19 goes away.