Truth Or Skepticism: Bull Market Fallacy
Jul 24, 2015
Tom & Dylan reunite for another segment of Truth Or Skepticism! On this episode, the guys discuss the recent spike and decline of volatility, and how this market is in a weird place. Jumbotron stocks are exploding from earnings announcements, but executives of some of those very same companies are selling their shares of stock. What gives? Check out the preview of the full segment below!
Tom & Dylan are perplexed by the huge moves in jumbotron stocks. Tom believes it is more of a bubble situation than anything, and believes over time these stocks will come back to earth and normalize. It just adds to the list of red flags he sees in this bullish market, and gives him even more reason to be short.
Dylan compares the VIX to a high performing car. It revs up quickly, and revs down just as quickly. They discuss whether this is an effect of complacency, or if it is just a normalized asset. Tom believes it is a normalized asset.
Tom & Dylan discuss the bull market fallacy, and how it seems that the dumber you are, the better you perform. ETF’s have been ripping up consistently, and leading people to believe that what goes up, must not come down. Dylan ponders on a potential safe haven play, and asks why that is not getting long stocks like GOOG, NFLX, etc.
Dylan wonders how buybacks and dividends affect the future of companies today. Tom is worried that if there are not deals that can be made to improve / shift business, things are either overpriced or the model has changed so dramatically that you have to buy things for the future.
The guys finish off this segment by discussing China, and the interesting turn of events that have played out over the past few weeks. Tom is interested to see just how much more they can pump into the economy, as they have already pumped a couple hundred billion into it. Dylan spins the question into a comparison of what’s scarier - the thin ice China is on or the passive American investor?
To see earlier episodes of Truth or Skepticism with Dylan Ratigan, you can watch them here on the tastytrade archives!
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options found on tastyworks.com.
tastytrade is a trademark/servicemark owned by tastytrade.
tastyworks, Inc. ("tastyworks") is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts to its customers. tastyworks does not give financial or trading advice nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks’ systems, services or products. tastyworks is a wholly owned subsidiary of tastytrade, Inc (“tastytrade”).
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with tastytrade (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastyworks. tastytrade is the parent company of tastyworks. tastyworks and Marketing Agent are separate entities with their own products and services. tastytrade has different privacy policies than tastyworks.
Quiet Foundation, Inc. (“Quiet Foundation”) is a wholly-owned subsidiary of tastytrade The information on quietfoundation.com is intended for U.S. residents only. All investing involves the risk of loss. Past performance is not a guarantee of future results. Quiet Foundation does not make suitability determinations, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of Quiet Foundation’s systems, services or products.
Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information on this site should be considered general information and not in any case as a recommendation or advice concerning investment decisions. The reader itself is responsible for the risks associated with an investment decision based on the information stated in this material in light of his or her specific circumstances. The information on this website is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading in derivatives and other financial instruments involves risk, please read the Risk Disclosure Statement for Futures and Options. tastytrade is an investor in Small Exchange, Inc.