E Problems To Come

I am slowly taking back my life after being pick-pocketed last weekend. Today the purse snatcher seems to have gone into attack mode. First I was sent an incoherent message via email in Russian about an alleged article about an Australian virologist supposedly written by me for publication. Then I started getting calls from a man with a thick Slavic accent offering drugs for the relief of pain. My company account was used for the article query and the telephone call so I think it is the purse thief getting even with me because he could not get gold-plated sneakers with my credit cards. Or maybe just a disgruntled subscriber... 

image source: unsplash

A hint of problems to come is the latest stock to hit a new high in London today, Flutter. It is a bookie firm working on-line to let Europeans bet on sports games and horse races. This kind of thing is what happens when markets get over-optimistic when borrowing is cheap because of low-interest rates when people who normally just like to bet move into the stock market with little real experience of how things work. I remain highly skeptical that the rising tide will continue to boost all boats out there. Note that because of regulatory issues, there is no Flutter ADR.

Another sign of excess is the reversal of Goldman Sachs's view of Tesla, which it downgraded to neutral about 5 months ago. Since the stock rocketed up, GS has reversed itself and now rates TSLA a buy. This is another hint that markets are due to correct.

Perhaps the biggest risk for bulls is the likelihood of higher taxes on capital gains and inheritances being planned by the future Biden Administration. While the full monte will only be legislated if the Democrats win the two Georgia seats being voted on Jan. 5, the odds are rising for them. Both of the Republican Senate contenders have extensively traded stocks based on what looks like non-public information they got from closed Senate discussions on corona-virus and other sensitive matters affecting their portfolios. This is probably illegal and certainly unfair.

More follows from around the world.

Materials

*My best performer today is UUUU, listed on the American Exchange, Canada small cap Energy Fuels Inc., a money-losing firm rated buy by Wainwright, Roth Capital, Rodman & Renshaw, and Noble Capital. It has started producing rare earths in Utah. It trades in Canada as EFR. The rare earths are found together with uranium. I was planning to tip it for US buyers but worried because there was an unexpected brokerage fee for buying it here. Now I am going to tip this stock as a way to end America depending on evil countries for rare earth supplies.

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