What If?...

“When mountains crumble to the sea, There will still be you and me”

- “Thank You”, Led Zeppelin

In the previous Shrubstack, we depicted in Meme-format how the Market felt like over the last few weeks: it was as if all the liquidity was getting sucked out of the Market and funnelled into Nvidia.

But “What if?”… someone just turns the taps the other way round… and liquidity flows from Nvidia to the rest of the Market?

Now that Nvidia is no longer “the hottest thing since Tesla in 2021” (and we know that one turned out), maybe … just maybe … the monkeys will start buying other stocks?

For example, the Russell vs the Nasdaq is down c.12% in the space of a few weeks. There’s c.10% upside just to get back to even.

You might argue, justifiably, that the Russell is a collection of crappy companies and not what you really want to own in a slowdown.

So here’s another one: the DOW JONES vs the Nasdaq is also DOWN 11% in the space of a few weeks and also has a c.10% upside just to get back to even.

Even more surprisingly, the Dow Jones vs Nasdaq ratio is back to its … 2000 lows! (ENOUGH WITH THOSE PESKY 2000 PARALLELS ALREADY!) (h/t to my buddy

Eliant’s Exploits

for showing me this chart).

This may sound like wishful thinking. But it’s still a possible scenario to consider.

I guess what I’m trying to say is this:

There’s always something to buy and there’s always something to sell, so keep an open mind…and good luck!

Shrub

Disclaimer:

This is NOT financial advice. This is the equivalent of Monty Python for Finance but worse: This is the trading blog of a shrub.

Don’t be Stupid. Seriously. How many times do I have to repeat this ….