{"id":435182,"date":"2018-10-07T13:05:02","date_gmt":"2018-10-07T17:05:02","guid":{"rendered":"https:\/\/goldtadise.com\/?p=435182"},"modified":"2018-10-07T13:05:02","modified_gmt":"2018-10-07T17:05:02","slug":"related-reads-some-from-carl-h","status":"publish","type":"post","link":"https:\/\/goldtadise.com\/?p=435182","title":{"rendered":"Related reads……Some From Carl H."},"content":{"rendered":"
I periodically discuss my take on how computer trading has influenced stock valuations and trading patterns.\u00a0 The following\u00a0is a link to \u00a0a short\u00a0interview\u00a0 with \u00a0one of the most successful investors of our time on algo’s.\u00a0 Its more confirmation bias for me, Druckenmiller identifies some patterns that have been broken and he attributes algo’s as being the culprit.\u00a0 While I agree, what they may mean is that algo’s are creating new patterns and eventually they will have to adjust to these patterns as will those who use our intellectual capital to invest also.\u00a0 Algo’s are trend followers always on the outlook for something that will reverse or impact a trend.\u00a0 How do we\u00a0define trends?\u00a0 Are they short term, long term, some combination of both?\u00a0 Algo’s have contributed to bizarre valuations in various stocks.\u00a0 I outlined one of those, Tesla, \u00a0yesterday.\u00a0 There are many.\u00a0 The question that is unanswered is what happens when the algo’s as a group turn bearish and their trading design is having them short and sell the bounces instead of buying the dips?\u00a0 What could make that happen?\u00a0 It could be one simple event—higher interest rates.\u00a0 Higher interest rates induce investors to buy CD’s and bonds instead of stocks.\u00a0 As rates climb more money is pulled away of the market as higher interest rates entice investors who have been risk adverse in the past.\u00a0 Because interest rates dropped to historic lows as the Federal Reserve worked to liquefy the banking system following the 2007–2010 debacle investors who typically bought bonds and other yield focused securities went fishing for higher returns from stocks.\u00a0 When they pull away from buying stocks it forces that money into investments that will not return to the stock market any time soon.\u00a0 People crave comfort and comfort for those with pension plans and other risk adverse funds will flock to securities that are perceived to have less risk.<\/span><\/strong><\/div>\n
\nHere\u2019s the third soundbite from the latest interview in the Kiril Sokoloff Series for Real Vision TV just released in full to 13D clients. This is a timeless conversation between these two great investors and is worthy of watching time and time again.<\/p>\n

In this third soundbite find out why Stanley says \u201cThese algos have taken all the rhythm out of the market<\/a>\u201d.<\/p>\n

Sign up today<\/a> to hear the full interview and enjoy all the 13D content built over 35 years and be able to detect change before others.<\/div>\n

Look out for Part 4 coming tomorrow.<\/p>\n

\nKind regards,<\/p>\n

Britt Daoust<\/strong>
\nSenior Director<\/i>
\n13D Global Strategy & Research<\/strong>
\nbritt@13d.com\u00a0\u00a0|\u00a0\u00a0<\/strong>www.13d.com<\/a>
\nm: +1 (502) 439-5318
\n____________________________
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‘Despondent’ Musk’s Tesla resembles Lehman, Greenlight’s Einhorn …<\/h3>\n
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NEW YORK (Reuters) – Hedge fund manager David Einhorn lambasted Tesla Inc (TSLA.O<\/a><\/span>) and its \u201cdespondent\u201d Chief Executive Elon Musk on Friday, comparing the electric car company to Lehman Brothers Holdings Inc, where he had flagged accounting problems several months before its 2008 collapse.<\/div>\n
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Report: Tesla ‘inundated’ with refinancing ideas<\/a><\/h4>\n
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