No. of Recommendations: 2
Not the only bubble. Automakers have dumped Billions into EV technology in the US. My theory is they looked at the ATP and GP that Tesla used to book, and figured EVs were easy money. Now, Tesla's GP has shrunk, while the big three EV divisions hemorrhage Billions. And that was happening before the government ended the subsidy programs. GM has already booked a significant writeoff. I suspect Farley is holding off on writeoffs, so he can retire, and the next guy takes the hit.
Seems the US wanders from one wave of malinvestment, to the next.
This concentration is extremely risky since so many investors buy index funds.Indeed. I started trimming VOO before the NVDIA earnings. Sold more on the earnings pop. Paranoid old phartz would wonder about a relatively broad based index, that went up nearly 50% in a year.
Wonder what Rat would say about the chart?
https://stockcharts.com/freecharts/gallery.html?vo...Steve
