Musk Is Running out and Buffett Is Hoarding Cash

Musk was the main hype generator in the financial markets yesterday. This time, he was not promoting Dogicoin or bitcoin. Instead, he staged a clowning on Twitter in the form of a vote to sell him 10% of his stake in Tesla or not.

We will not describe the nuances of taxation of billionaires or Musk's option to buy almost 23 million Tesla shares at $ 6.24 apiece (yes, a little more than $ 6 apiece instead of the current $ 1200 + -), we just note that the "people" voted "for" to sell... Stocks in anticipation of sales for a couple of tens of billions of dollars at once, of course, fell down.

Needless to say, this is, in fact, a manipulation of the stock price. And at one time, the SEC already beat Musk on the hands for this. But he clearly continues to run up. Well, we'll keep an eye on what's going on.

The markets were optimistic - they worked out the positive of the last week (FOMC meeting, Biden's infrastructure plan and NFP). Tellingly, the main legend of the investment world, Warren Buffett, continues to bypass this feast. Berkshire buys his own shares, if anything, and prefers to invest exclusively in cash. They have already saved up under $ 150 billion. Buffett's idea is understandable - he is waiting for the collapse of the stock market in order to buy everything for nothing and head the list of the richest people in the world.

Does he have a chance of that? If you look at the next highs in CAPE (Cyclically Adjusted Price-to-Earnings Ratio: the ratio of the company's capitalization to the average profit for a 10-year period, adjusted for inflation), it is easy to believe in it. The last time when CAPE reached such heights, Nasdaq, for example, lost under 80% (!) of its capitalization.