Bitcoin and Tesla, Pandemic and Macron, Moderna and BoE

18 thg 12, 2020

The main event of the day yesterday is Bitcoin's super growth. In two days, the cryptocurrency gained 20%. We will not talk again about bubble in the cryptocurrency market - this is too obvious. We only note that the last two bubbles started to collapse in December 2013 and 2017, respectively. This does not mean that history will repeat itself this time, but December is the best fit for fixing profits. And profit fixation is perfect for the role of a needle, which will provoke a bubble deflation. By the way, both of the last bubbles ended with a loss of over 80% of the price.

Bitcoin showed historical highs against the backdrop of new pandemic records. The maximum number of new cases in the world, the United States and Germany. The maximum number of deaths in the United States, etc. Even French President Macron caught the coronavirus. As a result, the European leaders are self-isolating. Another cause for concern was information about another allergic reaction to the Pfizer vaccine this time in the United States, as well as the loss of a large shipment of vaccines due to improper storage.

But markets were more interested in the FDA's decision on the Moderna vaccine. As expected, approval was received. So, from next week in the United States will be vaccinated with two vaccines.

In addition, the focus continued to be on the fate of US stimulus. As usual, a lot of talks on progress, but no deal on the table.
From other news, we note that the Bank of England left the parameters of monetary policy unchanged. The data on the initial jobless claims in the US were again worse than forecasted and showed growth, recalling the consequences of lockdowns.

Today, after the market closes, Tesla will be included in the SP500 index. We continue to consider this a stupid move from the index committee, which will cause problems to the index when the Tesla bubble collapses. By the way, over the past 31 years, when a large company was included in the SP500 index, its shares were declining by 7% over the next year. And the shares of the company, which at the same time was excluded from the index, grew by an average of 20%. So, lets sell Tesla and buy Apartment Investment and Management!