Loading ...On the ‘volume is low’ bearish narrative
On the 'volume is low' bearish narrative –
Many are pointing to the low volume as a reason why this rally must fail. However, in a post-crash environment, low volume is the norm (not the exception).
Volume usually stays low after big declines. pic.twitter.com/2pAS6gNqGj
— Puru Saxena (@saxena_puru) April 25, 2020
Yes, Puru is awesome … I follow him. I am also in some of his picks and they remain strong, just like miners. However, the reason volume is going down is from stock buybacks. Maybe not as much in the early 2000s before the crisis where that volume was essentially flat. But we know some of the smoke and mirrors was going on by the FED and Wall Street.
It is now being reported from 2009 onwards $0.90 out of every $1.00 corporations made went to stock buybacks. I suspect the remaining rising in markets was due to technology, ingenuity, etc., but that’s about it. What a wasted decade! https://www.youtube.com/watch?v=elgOr2X4DQE
Have paid a lot of attention to Puru, since someone (I believe you) first mentioned it on the Rambus site. Have you seen the recent interviews of Chamath Palihapitiya of social capital? He has returned 30+% IRR or 997% over the past 10 years. Growth investing is really the anti Berkshire, but both have a high amount of cash on hand at this time.
Lots of great interviews of him on youtube.
Here is a link to Social capital, recent ipo, annual shareholder letter, very good weekend read!
https://www.socialcapital.com/annual-letters/2019
They are not open to new investors.
If they are traded on exchange what it the symbol?
First heard of him on his interview admonishing corporate buybacks on cnbc went viral. Very fun videos to watch so ill post them here, so you can check them out.
https://www.youtube.com/watch?v=qAt7Rg1u2l8
https://www.youtube.com/watch?v=NvEWez59fbI
After this video went viral, a second interview went viral on CNBC, where Scott, the host tried to guilt Chamath about his recent IPO that just closed.
https://youtu.be/Go1I0tu01n4
The reason why I brought up Chamath, was because of the recent performance of Puru, who has a somewhat large following on twitter. His stock portfolio is up this year, and a big conversation that he is starting is, that growth investing can and will outperform moving forward.
https://www.youtube.com/watch?v=RAvYvyj37UU
Chamath is also a large investor in $WORK which is Slack technologies. This chart was setting up a nice IHS and is a growth name that I have been doing my DD on.
Im unsure of the details of Social Capital or the recent IPO as it is currently opaque, but a recent IPO was just done and here is some info on that.
https://www.prnewswire.com/news-releases/social-capital-hedosophia-holdings-corp-iii-announce