Star Trek Stock Market

Space: the final frontier
These are the voyages of the star ship Enterprise
It’s five year mission:
To explore strange new worlds
To seek out new life and new civilization
To boldly go where no man has gone before!

Now that the leaders of the most popular tech companies are going into outer space, we thought it appropriate to consider the return implications of this urge to “explore strange new worlds.” We believe the investor’s enemy is stock market failure. Stock market failure is a function of financial euphoria. Financial euphoria can be tracked historically. One of the world’s most brilliant scientists, Sir Isaac Newton, said this about stock market psychology:

“I can calculate the motion of heavenly bodies, but not the madness of people!”

Image by jacobdeb from Pixabay

Each financial euphoria episode is designed “to explore strange new worlds”. In the 1920s we explored automobile travel and the radio. At the height of the 1929 bubble, RCA was Apple, Amazon, and Google combined. They were one of the largest makers of radios, one of the largest nationwide broadcast networks, and one of the largest producers of radio show content. There was no end to where the freedom of movement via the automobile and the democratization of music, information, and entertainment provided by the radio. My Dad grew up on radio programs for kids.

The space race triggered another financial euphoria episode in the Go-Go 1960s. The technology used to fly into outer space and land on the moon filtered itself into everything from computers to transistors and elsewhere. Star Trek was born in 1968 and continues to capture the imaginations of 30–50-year-old Americans, who dress up as their favorite characters. They “seek out new life and new civilization,” but their Comic-Con dominated lives are a “strange new world” to me. Companies went so far as to add the letters o-n-i-c-s to the name of their company to garner maximum momentum-based investor attention. Think Panasonic and Arrow Electronics.

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Disclosure: This article contains information and opinions based on data obtained from reliable sources, which is current as of the publication date, and does not constitute a recommendation ...

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