Still Crazy After All These Years

And just when we thought we’ve seen it all…

From the article:

One of Vietnam’s biggest automakers has made a big splash on its entry to Wall Street, pushing its market capitalization above that of industry giants such as Volkswagen and Ford.

VinFast, an electric vehicle maker, enjoyed a red-hot debut in New York on Tuesday after merging with a special purpose acquisition company (SPAC), Black Spade Acquisition Co.

Shares of the newly combined company skyrocketed 270% on the Nasdaq on their first day of trade. They opened at $22, more than double the initial price of $10, and closed at $37 apiece.

The surge propelled VinFast’s market cap above $85 billion. That’s more than Volkswagen (VLKAF) or Ford (F), which are valued at 63.9 billion euros ($69.7 billion) and $48 billion, respectively, according to Refinitiv.

But wait, it gets even better…

So far, the company has released four electric vehicle models and delivered roughly 19,000 vehicles, according to its prospectus. For comparison, Volkswagen sold 4.4 million vehicles just in the first six months of 2023, more than 321,000 of which were electric.

Oy vey! Even for Cathie Wood this one might be a bit too much.

🤔 CONTRARIAN INDICATOR IN COMMODITIES

Long-time readers will know we’re big fans of various contrarian indicators here at Capitalist Exploits HQ.

More often than not, things like magazine covers, Superbowl ads, new ETFs and investment funds launching (or shuttering), etc. tend to signal market turning points with stunning accuracy.

With that in mind, this piece caught our attention the other day (h/t @PauloMacro)…

* Goldman Commodities Research Chief Jeff Currie Set to Leave Bank

This is the exact opposite of what we saw back in 2008 when oil rocketed to $150 and commodities went wild. There was a wave of commodity ETFs listed and commodity focused funds opened. Every week brought a new commodity fund… and just in time for the peak of the market.

But not right now. Today, most investors (still) prefer to chase money-losing EV companies rather than gorge on money-gushers in the commodities space.

💵 ON BONDS

Check out this fascinating graphic from Charlie Bilello (@charliebilello):

We’ve been saying the bond market is a bug in search of a windshield for what feels like ages. And investing in bonds today — at the end of a multi-decade debt supercycle — strikes us as eating vindaloo that has been left out on the bench for a week and has gone furry. No bueno!


More By This Author:

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Here We Go Again
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Disclaimer: This is not intended to render investment advice. None of the principles of Capex Administrative Ltd or Chris MacIntosh are licensed as financial professionals, brokers, bankers or even ...

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