I would argue that bitcoin is a hedge against a particular type of crisis. That being an inflationary crisis. If we see inflation start to rise, then bitcoin will go through the roof.
Any chance you can upgrade your mic and make the room have less of an Echo! Thank you so much again for all the information. Great Stuff I have been Sent By Sven Carlin I have been following him for over a year now. It looks like I will be learning from you for years to come as well!
Can you make a video on the whole GameStop and r/wallstreetsbets saga? A hedge fund is about to go bankrupt and every news channel is shitting their pants
The end game is to make a statement, Professor. We retailers and wsb autists are doing just that. I own $GME to squeeze the hedge funds. I don't care if I lose my money. I was just thinking how I'll hold these shares forever just for the memories, unless of course GME goes VW 08 in which case I'll name my price and get filled and pay off some student loans. It's more than that, even. I heard a story my mom's coworkers daughter was trying to buy "for the altruism of it all". Robinhood locked her out. This isn't free or fair markets. The fair price is whatever someone is willing to pay. That's how this is supposed to work. Not our fault the hedgies got caught in overtly risky positions. Day 4 of investing 101 is short positions carry unlimited risk. Where was the risk mitigation? 139% float sold short. What were they thinking? I hope it ripples thru the entire financial system and we do it again.
Prof. Aswath can you please talk about Gamestop saga. Its a once in a generation event and would like to hear your take on it. I understand it will be ridiculous to talk about valuations here. This event is fundamentally changing my thinking about valuations and investing in general. Are we the retail investors at mercy of these hedge funds and institutional investors who take crazy amount of risks and stop at nothing to make money. Using social media groups to move the stock prices and fight the big guys on wall streets a new type of movement that will be seen more in modern times?
He did 8 min is all about traders aka = GameStop players. Traders can drive momentum. And the ultimate delusion is that create a valuation based on fundamentals of value.
This is something funds themselves have done for a long time, pump and dump, GME is just retail traders doing it back in a half-assed semi-coordinated way. These are things the SEC is probably supposed to prevent, but they don't do much.
The job of any investor such as a hedge fund is to make money. What is the problem with that? The amount of risk that a hedge fund takes is their problem and in general, is lower than many retail investors because they have long/sort positions. Retail investors are not at mercy of anyone except themselves.
My spac warrant portfolio is down 35% the last 3 days. Debating whether to sell now at a loss and sit out for a bit or hold on and hope this isn’t the beginning of something much worse. Thoughts?
For a few years now, the "all weather portfolio" has been dead for the very reason you mentioned -- everything moves together up or down. Finding uncorrelated assets seems now to be difficult (the 60/40 stock/bond ratio no longer seems as diversified as it is taught in the investment books).
Great presentation Professor, could be enhanced with a better quality microphone. Seems like the whole episode was designed to hammer home the points about Bitcoin. What will be the impact on Bitcoin and other crypto when central banks create digital currencies?
Sir, could Gold have been down due to margin calls in equities (which require traders to sell their assets to meet those deficits, and they end up selling their most liquid asset - Gold)? Also, USA has accused India of deliberately suppressing the Rupee...could it have been possible that USDINR may have breached 70 (i.e. Rupee would have appreciated, had RBI not intervened)? Kindly advise Sir _/\_
I would disagree that Bitcoin is a "dark markets" currency. Dark web merchants would prefer privacy coins, like Monero or Zcash, as Bitcoin can actually be fairly effectively tracked by organizations like Chainalysis. In comparison, the US dollar is the preferred method of payment for criminals. Much harder to track cash. The narrative of "dark markets" as Bitcoin's purpose suits the agenda of financial regulators because they want to be able to control the uncontrollable threat to their dominance. That said, everything else you said I agree with.
There is a famous character, a Google search for "signals walter bulls". He made a fortune for himself back in 2018. Recently, such services have appeared that allow copying the results of professional players. This guy shows how to copy after him automatically using such a service. We must try while the market is on the rise.
It would probably makes sense for you to as much research on crypto as you do when valuing stocks. High level speculation on its pricing does not tell anything about the technological and ecosystem developments, nor it tells much about the underlying liquidity. You claim to be a value investor but spend half of the video making big conclusions based on the price charts. I really like your videos on equity markets but this one really lacks some proper research and depth
There are no technological developments to discuss. The underlying technology is there to be used with any other digital currency. It is not proprietary to bitcoin, hence bitcoin is not the technology but an empty shell protocol that can be easily replaced. How can you value something that is there for its tradeability and not for other uses?
That's incorrect. The way proof of work consensus mechanisms work make blockchains with longer track record superior to others. The longer the chain, the more secure it is. Bitcoin has been formed multiple times with an aim of improving it but the main chain has remained dominant. Bitcoin serves as an anchor asset to the whole ecosystem because of its long record and security parameters just like gold served as an achor to the world's financial ecosystem a while ago. You can't view Bitcoin without looking into and understanding the whole ecosystem and where it's going. How overpriced or underpriced it is right now depends on how big you assume the digital good and finance ecosystem will become. It's still in its very early stages and just like with many other financial solutions in the worlds history has got quite a bit of opportunistic speculative demand tied to it.
For BTC, people care more about "getting rich asset" than "crisis asset"... disappointed about your arguments against BTC, sorry to say, but so lame, apparently you haven't read any serious books or materials about BTC, still ignorant because you think you are entitled to, that's why you couldn't value Apple, Tesla, Amazon, Uber, BTC properly (very bad track records) , but I still love your work in other areas, established ones
He made money on Tesla and Apple. And wrote one of the most influential books on valuation, based primarily on Amazon - it moved the thinking forward for traditional investors. Your examples are terrible.
Thank you for taking your time and making these invaluable contents available for free. This is the best part of Youtubing :)
Thank you!! For putting to words much more eloquently than I am capable of for why bitcoin is not an asset like stocks or bonds.
great overview of what 2020 had in store. thanks
Thank you professor Damodaran.
Excellent presentation! Thanks!
Always a great pleasure to listen to your insights!
Thank you so much for your insights
Very interesting thanks!
I would argue that bitcoin is a hedge against a particular type of crisis. That being an inflationary crisis. If we see inflation start to rise, then bitcoin will go through the roof.
fact or theory?
Can’t agree more on Bitcoin.
Any chance you can upgrade your mic and make the room have less of an Echo!
Thank you so much again for all the information. Great Stuff I have been Sent By Sven Carlin I have been following him for over a year now. It looks like I will be learning from you for years to come as well!
Thank you frfr
Thank you!
COVID has been all over the world so the correlation with non us markets must be high
Thanks Uncle - please stay safe and sane in trying times!
Your videos are a blessing!
Can you make a video on the whole GameStop and r/wallstreetsbets saga? A hedge fund is about to go bankrupt and every news channel is shitting their pants
lots of videos already -- i recommend the ones by plain bagel and mark meldrum. would be cool to see aswath's take as well, of course
Yeah it will be cool - since Aswath also commented in the past that Robinhood investor don't really have much influence in the market.
This is a dramatic trading story. I get the sense this guy is more interested in investing and economic trends than trading drama.
@Aswath Damodaran reported fake account
The end game is to make a statement, Professor. We retailers and wsb autists are doing just that. I own $GME to squeeze the hedge funds. I don't care if I lose my money. I was just thinking how I'll hold these shares forever just for the memories, unless of course GME goes VW 08 in which case I'll name my price and get filled and pay off some student loans. It's more than that, even. I heard a story my mom's coworkers daughter was trying to buy "for the altruism of it all". Robinhood locked her out. This isn't free or fair markets. The fair price is whatever someone is willing to pay. That's how this is supposed to work. Not our fault the hedgies got caught in overtly risky positions. Day 4 of investing 101 is short positions carry unlimited risk. Where was the risk mitigation? 139% float sold short. What were they thinking? I hope it ripples thru the entire financial system and we do it again.
@Aswath Damodaran I don't have what's up. So what's up?
Prof. Aswath can you please talk about Gamestop saga. Its a once in a generation event and would like to hear your take on it. I understand it will be ridiculous to talk about valuations here. This event is fundamentally changing my thinking about valuations and investing in general. Are we the retail investors at mercy of these hedge funds and institutional investors who take crazy amount of risks and stop at nothing to make money. Using social media groups to move the stock prices and fight the big guys on wall streets a new type of movement that will be seen more in modern times?
He did 8 min is all about traders aka = GameStop players. Traders can drive momentum. And the ultimate delusion is that create a valuation based on fundamentals of value.
Uh uh. Prof is not into conspiracy theories about bored subreddit posters actually being steered by the Bilderberg and shit.
This is something funds themselves have done for a long time, pump and dump, GME is just retail traders doing it back in a half-assed semi-coordinated way. These are things the SEC is probably supposed to prevent, but they don't do much.
Prof value stocks not pricing them
The job of any investor such as a hedge fund is to make money. What is the problem with that? The amount of risk that a hedge fund takes is their problem and in general, is lower than many retail investors because they have long/sort positions. Retail investors are not at mercy of anyone except themselves.
Excellent! Thank you!
My spac warrant portfolio is down 35% the last 3 days. Debating whether to sell now at a loss and sit out for a bit or hold on and hope this isn’t the beginning of something much worse. Thoughts?
Sprq?
What you think about gamestop?
For a few years now, the "all weather portfolio" has been dead for the very reason you mentioned -- everything moves together up or down. Finding uncorrelated assets seems now to be difficult (the 60/40 stock/bond ratio no longer seems as diversified as it is taught in the investment books).
well put "you built a very shallow basis for longevity"
I don't think the Professor is interested the GME topics simply because it's a pricing game in which it's about basic math game.
Great presentation Professor, could be enhanced with a better quality microphone. Seems like the whole episode was designed to hammer home the points about Bitcoin. What will be the impact on Bitcoin and other crypto when central banks create digital currencies?
Thank you so much professor!
Thanks for this video! Especially the bitcoin part was very informative
Hey prof is the retail frenzy a good research thesis/topic?
Sir, could Gold have been down due to margin calls in equities (which require traders to sell their assets to meet those deficits, and they end up selling their most liquid asset - Gold)?
Also, USA has accused India of deliberately suppressing the Rupee...could it have been possible that USDINR may have breached 70 (i.e. Rupee would have appreciated, had RBI not intervened)?
Kindly advise Sir _/\_
$Bitcoin Destroyed 😂
I would disagree that Bitcoin is a "dark markets" currency. Dark web merchants would prefer privacy coins, like Monero or Zcash, as Bitcoin can actually be fairly effectively tracked by organizations like Chainalysis. In comparison, the US dollar is the preferred method of payment for criminals. Much harder to track cash. The narrative of "dark markets" as Bitcoin's purpose suits the agenda of financial regulators because they want to be able to control the uncontrollable threat to their dominance.
That said, everything else you said I agree with.
There is a famous character, a Google search for "signals walter bulls". He made a fortune for himself back in 2018. Recently, such services have appeared that allow copying the results of professional players. This guy shows how to copy after him automatically using such a service. We must try while the market is on the rise.
spam
It would probably makes sense for you to as much research on crypto as you do when valuing stocks. High level speculation on its pricing does not tell anything about the technological and ecosystem developments, nor it tells much about the underlying liquidity. You claim to be a value investor but spend half of the video making big conclusions based on the price charts. I really like your videos on equity markets but this one really lacks some proper research and depth
There are no technological developments to discuss. The underlying technology is there to be used with any other digital currency. It is not proprietary to bitcoin, hence bitcoin is not the technology but an empty shell protocol that can be easily replaced. How can you value something that is there for its tradeability and not for other uses?
That's incorrect. The way proof of work consensus mechanisms work make blockchains with longer track record superior to others. The longer the chain, the more secure it is. Bitcoin has been formed multiple times with an aim of improving it but the main chain has remained dominant. Bitcoin serves as an anchor asset to the whole ecosystem because of its long record and security parameters just like gold served as an achor to the world's financial ecosystem a while ago. You can't view Bitcoin without looking into and understanding the whole ecosystem and where it's going. How overpriced or underpriced it is right now depends on how big you assume the digital good and finance ecosystem will become. It's still in its very early stages and just like with many other financial solutions in the worlds history has got quite a bit of opportunistic speculative demand tied to it.
For BTC, people care more about "getting rich asset" than "crisis asset"... disappointed about your arguments against BTC, sorry to say, but so lame, apparently you haven't read any serious books or materials about BTC, still ignorant because you think you are entitled to, that's why you couldn't value Apple, Tesla, Amazon, Uber, BTC properly (very bad track records) , but I still love your work in other areas, established ones
🤦♂️🤦♂️
😂😂😂
Lol your delusional, he is an economist, your a five year old who cant look past his own biases
He made money on Tesla and Apple. And wrote one of the most influential books on valuation, based primarily on Amazon - it moved the thinking forward for traditional investors. Your examples are terrible.
He has done great work, of course, love a lot of his work