Happy Friday!
Before we get onto the long weekend, Brian Sozzi asked my opinions about oil, rates, and the new mega-IPO fever. First off, if you study IPOs over time, most will go below their initial price somewhere in the first year - that's just a math fact. With 5 times the amount of shares allocated to retail investors, SpaceX is setting up for a ton of volatility. Plus, you are not getting growth from a small firm, it's being valued at almost 2 trillion!!! What is your upside from here? Private equtiy already got 10-15x their money, and you are just buying up shares at the end of the line. Did I mention they don't yet make a profit..at this size.
As for rates, I explain how this week was a great entry point to buy long duration treasuries. But I warn that without a strategy, buying long duration is playing with fire.