Frothy Assets

Diary for speculative market analysis and frequent political musings.

[Frothy Assets @frothyassets]

The name of a killed service member covered up by a Dow Jones index ticker is a pretty grim metaphor for how America often operates.

[Frothy Assets @frothyassets]

Big Friday rotation into quality and high multiple-“defensives” like Walmart, Costco, Waste Management, Republic Services, Church & Dwight, Monster, Rollins etc on Friday. These are still higher than market multiple names.

Seems like it makes sense that the first rotation is into the high multipe compounder names. It is not a true “value” focused market. Friday was a step away from euphoria, but buying 30x names isn’t exactly risk off. A value focused market would be an entirely different shift, but some baby steps made.

[Myles @finphysnerd]

The selloff in the high moat, compounder names is getting ridiculous. The irrs I get for some of these co's as long as they don't royally shit the bed are pretty attractive. Stuff like $SPGI, $MA, $V, $BR and now add $CME, $CBOE and $ICE with their recent selloff. Steadily adding

[Frothy Assets @frothyassets]

@MacroEdgeRes what month?

[Frothy Assets @frothyassets]

@MacroEdgeRes ‘Mr President, please pump the market for just five more days. Please Mr Trump.’

[Hanno Lustig @HannoLustig]

Passive investing might become a bit like flying on Ryanair, where you show up at the airport with your dirt-cheap ticket and all of a sudden you get hit by a ton of fees you didn't anticipate.

The case for being a passive investor is still very strong. But the case always rests on fees. If index providers start adding hidden fees for passive investors by stuffing the index with overvalued stocks that haven’t seen real price discovery, the case for passive investing will inevitably become less compelling.

Here's my latest on the two-cent blog. Who's looking out for passive investors?
https://t.co/MOzWihz58a

[Frothy Assets @frothyassets]

How lovely, can’t wait for my access to technology to be “temporarily restricted due to hateful language” in 2031 under President Newsom’s Inclusive and Safe AI Guardrails executive order.

[Eliant Capital @eliant_capital]

If you can’t beat China, mine as well join them

[Frothy Assets @frothyassets]

Small robinhooders make for a better image here, but institutional demand is/will be impacted by near term market performance/conditions.

[Frothy Assets @frothyassets]

Given Friday’s large move, relevant parties will be incentivized to manufacture a last minute market pump to avoid lack of IPO demand via this:

[James Chanos @RealJimChanos]

You can’t make this up…On their epic price target hike for $TSLA right before the SpaceX IPO, JP Morgan actually cut its 2027 estimates for Tesla.

[Frothy Assets @frothyassets]

@finphysnerd @stockgutter Long only retail traders tend to buy these kind of inverse ETFs during market drawdowns (since they can’t short). For instance, I’d assume borrow rates for these would drop in a bear market with retail buying them.

[Sid Prabhu @sidprabhu]

The Fed should spend the next 2 meetings changing wording and maybe think about acting after Labor Day… just completely unserious about their inflation mandate.

[Frothy Assets @frothyassets]

@WagieCapital Clawing back implies a grueling, slow and measured climb. He gambled back to even taking on large risk, and blew it taking on large risk.

[Frothy Assets @frothyassets]

@SowingAlphaSeed This is probably the right take, even though he is pretty funny:

[Hunter Biden @HunterBiden]

@SleepyManny Man if you’re going to be mean and least get it right. I smoked crack. I would never have wasted coke on snorting it.

[Frothy Assets @frothyassets]

Plenty of this going on:

[Ali Romman @aliromman_]

@ns123abc "My baby is on track to weigh 10 trillion pounds by age 10."

[Zynchronic1ty @Zynchronic1ty]

@sidprabhu The real significant piece to me:

"Among Republican voters, roughly 43 per cent said they disapproved of Trump’s handling of inflation and the cost of living, compared with 26 per cent a month earlier."

[James Chanos @RealJimChanos]

This isn’t even remotely true. $AMZN went public in 1997 at a $450M valuation, or 3x revenues. $GOOGL went public in 2004 at a $23B valuation and at 7x revenues. $META had a $104B valuation in 2012 at 20x revenues(and immediately sold off almost 50%). SpaceX dwarfs these numbers.

[Jared L Kubin @JaredKubin]

https://t.co/aUj5sjlKi2

[Frothy Assets @frothyassets]

@citrini what are you up to

[Upslope Capital @UpslopeCapital]

2nd highest low vol spread (SPLV-SPHB) since the ETFs were formed 15+ yrs ago

[Frothy Assets @frothyassets]

if this entire move retraces on Monday…

[Upslope Capital @UpslopeCapital]

2nd highest low vol spread (SPLV-SPHB) since the ETFs were formed 15+ yrs ago