Key insights
- The author speculates that a recent market downturn may be attributed to investors liquidating positions to fund a potential SpaceX IPO. While acknowledging geopolitical tensions, the author emphasizes SpaceX as the primary driver, suggesting a lack of sector-wide price appreciation to retain retail investors. This outflow could signal a bearish sentiment if retail participation wanes.
I am kind of thinking the bloodbath we saw today in the market is because of SpaceX IPO.
I doubt the war between Iran vs the US/Israel allies has impact though not entirely. But the SpaceX IPO to me, is the elephant in the room. Folks might be gearing up for it by selling off their portfolios even at a loss because its Elon in the market!
Who wouldn't want to buy Elon?
The only antidote, I would think, is for other sectors to hike their share prices to ground investers especailly retailers, to stay put! But I guess that won't happen.
So, lets sit back and watch.