Tweets

Cathie Wood is day trading stocks like a monkey on crack..I do not see how this is sustainable for this fund

— 𝕮𝖍𝖎 (@chigrl) March 26, 2021

Wrap

Full blown risk on day. Everything up, except the VIX. Oh, and except some dodgy Chinese frauds, such as $GSX. Oh, and bonds (but not yields, obviously).

Some stories of huge block trades being executed by Morgan Stanley. Suggestion is that it’s an institution (e.g. hedge fund) in trouble.

Some additional rubbish being sold as NFTs.

Weakness in SPACs, e.g. Chamath basket of SPACs.

Mostly price moves being attributed to blocking of Suez canal. I’m not sure.

Thoughts

Clem Attlee was a heroic figure on the Left, and pretty highly regarded on the Right. He and Margaret Thatcher were probably the only two twentieth century PMs who have left their mark, indelibly, on Britain. Like all good socialists, he focussed on relieving the oppressed. He was opposed by the Right for destroying institutions and they old way of life. He would have been opposed by the libertarians for not allowing the population to dispose of the product of their labour as they chose. Coase would have pointed out the huge transaction costs of using private insurance to provide healthcare and old age pensions. All the political tribes view the problems of society through their own distinctive perspective, and none really even want to discuss an optimal trade off between the different goals they each want to achieve. Politics muddles through, but political debate almost never acknowledges the existence of this trade off, let alone how to consciously go about measuring it and quantifying what is lost.

Arnold Kling has written about the ways that political ideologies fail to understand each other. I’m not sure he’s explicitly discussed the tradeoff, but it’s a long time since I read any of his work on this.