So why is Bitcoin’s price on a tear? It’s an asset with limited supply. People can try to rationalize whatever they want. They opine that it’s going to be a necessary storage of value in the future, thus it should be worth something someday. They create some misinformed narrative about why they should own some percentage of it in their portfolio. It has no intrinsic value - it’s only worth what someone else will pay for it. However, there’s not an “investing” reason why investors are buying Bitcoin.īitcoin is a solution in search of a problem. I don’t fault people for trading Bitcoin, or trading anything. They just expect it to continue, though they have no educated insight as to why it would do so. Those investors don’t know why they are going up. Investors are buying some stocks just because they see them going up in price. There’s a lot of optimism in the stock market today. On December 5, 1996, then-Federal Reserve Chairman Alan Greenspan said that “irrational exuberance has unduly escalated asset values.” Asset values continued to rise, with some interruptions, for another three years. The good news there is, that can be enough. The only thing that seems to be lifting the stock market higher recently has been irrational exuberance. What if everything that is priced in, happens? Then what? What is that next catalyst that will move the markets much higher? What is the worry that remains which can be solved to help give the stock market another boost? I want stock prices to go higher, but I would feel better about it if they were doing so on the back of solidly improving fundamentals. That leaves it vulnerable to bad news.īut maybe we don’t get any bad news. The stock market is priced to perfection. A significant economic rebound for the second half of 2021 is baked into the market. It’s priced in government elections not being a roadblock to corporate progress. It’s priced in a broadly distributed vaccine. The stock market has priced in another round of effective fiscal stimulus. The stock market, as they say, likes to climb a “wall of worry.” Investors, however, don’t seem to have a care in the world. stock market as the calendar flips from 2020 to 2021. I, Allen Harris, hereby nominate Alfred E. It was in the dentistry advertisements that we first learned of Alfred’s motto, “What? Me worry?” A Mad cartoonist named Harvey Kurtzman spotted the ad and pitched using it as the magazine’s mascot, saying that “it was a face that didn’t have a care in the world.”
Interestingly, Alfred’s image was created before Mad, appearing in early 20th-century advertisements for painless dentistry. Neuman was the fictitious cover boy of Mad. Dalton - I grew up (if you want to call it that) with Mad Magazine.
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