A 2000% return…in two days! | Australian Markets

Three stuff you need to know at this time…

1. Newsmax skyrockets 2000% after its IPO.

You simply need to smile on the insanity of markets generally.

Here we’re, all apprehensive about tariffs and Trump and the Aussie election…and a latest US IPO goes up 2000% in two days.

Yep, no kidding.

The company is known as Newsmax. It’s a conservative news channel, and apparently devoted largely to Donald Trump. They’re gunning for Fox News.

It’s IPO was at US$10 per share. It hit US$210 at one level in US trade in a single day. 

$10,000 could be value $210,000 at that return.

I’ve by no means heard of Newsmax earlier than. I’m not saying I or it is best to or might have been on it.

But it does display that particular person shares can go fully bananas no matter is happening within the wider world.

Clearly, something thought of within the graces of the US President might go electric.

Watch out for the subsequent one. The herd might barnstorm into tons of completely different shares, on these grounds alone.

The converse can also be true. Anything Trump doesn’t like or would possibly go after might drop like a stone.

Whether this cult of character is sweet for the USA and the world stays to be seen.

There’s one thing else we’d take away from all this.

See this…

In different phrases, we’re having a flash of Tulipmania.

This is fascinating within the context of market psychology. The USA has been like Australia lately, in that the IPO market has been fairly useless.

Now out of the blue we’d see a flood of IPOs within the wake of Newsmax.

That suggests the market could possibly be going into some kind of ‘melt up’ dynamic the place traders begin chasing something that appears good, even when they don’t perceive most of it.

That doesn’t jibe with the bearish headlines and gloomy recession discuss. But money talks, and bullshit walks.

The Newsmax bubble says the group is getting stressed for motion.

I tuned into my colleague James Altucher this morning, as half of a common zoom call.

We have been all astonished to search out he was half of an investment group that purchased into Newsmax earlier than it floated on the market.

They’ve already offered. They didn’t get all the Newsmax rise, however a first rate chunk of it.

No surprise he retains saying to buy up potential AI shares on the market. The herd might plough into any of them at any second.

Get the hitlist right here.

2. Meanwhile, over in China…

Trump can put tariffs on Chinese items coming into the United States. He can’t control something that goes on inside China.

And there’s loads of tech innovation taking place right here. Arguably, more so than the US!

Case in level:

China simply accepted flying autonomous taxis. This will embody sight seeing tours.

Check out this image as a style of what you would possibly see in your subsequent journey to China…

Incredible stuff. I needed to get the practice home from the MCG the opposite week after Hawthorn beat Essendon. One of these would have been super helpful!

Here comes probably the most staggering half. There’s a small Aussie firm that would see a large rise in income from this industry.

You see…

What begins in China is not going to keep in China without end. How long earlier than these are flying across the world?

We have a world market in play right here, and an industry that would run for years.

And a stock, proper right here on the ASX, that would experience it for years, if not a long time. It’s all half of my new report I’m placing collectively.

Again, for this reason I waste no time worrying about Donald Trump.

He’ll be long useless sooner or later… and there’ll nonetheless be flying taxis. Someone can be making money from them.

Tariffs, in distinction, could possibly be right here sooner or later, and gone the subsequent.

Invest accordingly, in my opinion.

3. By the way in which, we have now some American colleagues visiting the Fat Tail workplace.

I used to be getting espresso with one of them yesterday.

I stated to the barista, ‘He’s American. Feel free to charge him 25% additional.’

He didn’t chuckle.

Best needs,

Callum Newman,
Editor, Small-Cap Systems and Australian Small-Cap Investigator

PS. Don’t neglect to tune into my colleague James Altucher and what he’s saying concerning the “wealth window” forming now. This is across the second wave of AI share market winners brewing.

AI, like gold, will not be one thing that’s going to reverse tomorrow. It might run for years, if not a long time, in the identical means social media has pushed US stocks like Meta for over a decade now.

Believe it or not, they laughed at Mark Zuckerberg when Facebook listed on the share market. No one’s laughing now, as Facebook grew to become one of the best companies in historical past.

We might see a repeat with AI. Get what you need to know right here.

***

Murray’s Chart of the Day
— Telstra Group [ASX:TLS]

After three years treading water, you’d be forgiven for considering that Telstra is the world’s most boring stock.

But there was some motion on the station and the long-term chart is beginning to look fascinating.

In the chart above you possibly can see two waves traced out from the low hit in 2018.

The present rally from mid-2024 is beginning to seem like the start of the third wave greater.

$4.46 was the high reached in June 2023. Prior to that high TLS hasn’t traded at $4.46 since June 2017.

The long-term pattern lately turned up and the shopping for strain is building, with Telstra working from $3.85 to $4.31 over the past couple of months.

The third wave greater in a main change of pattern is usually probably the most highly effective one which surprises to the upside.

I don’t suppose will probably be long till Telstra is testing main resistance at $4.46 and above there it’s blue sky.

Regards,

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps

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