Odd indeed.
Figuring out the behavior of financial markets is difficult as it is, but the human behavior behind the markets is “challenging.” Between the “on again, off again” administration’s economic policies and decisions, political sidings and almost a complete distrust of news, the behavioral thinking of the populace is………odd. Very odd.
Invest in Tesla? Follow Tesla? Well the fellow who kind of runs Tesla and goes by the name of Elon Musk has had quite a ride the past few months. For years he was an acclaimed hero/idol/genius by most. Electric vehicles, status and statement vehicles that “championed” climate change initiatives. A beloved soul to be sure. But…..uh oh…. he was tabbed by the president to slim down the government, cut costs, eliminate fraud and waste and improve efficiency.
Now for decades every political candidate running for president has championed cutting government waste, fraud and inefficiency. Not this time. Mr Musk was immediately hated, scorned and, at times, threatened. Tesla dealerships were burned, cars scratched and set on fire and the stock plunged. A lot. Leading DOGE (Department of Government Efficiency) left Elon “dazed and confused.” Then, in order to protect his net worth and Tesla shareholders, Musk quit DOGE and returned to the private sector. Not good enough.
Returning to idol status has been tough for Elon. So, to distance himself from his friendship with President Trump, Musk bashed every thing Trump was planning (Big Beautiful Bill, etc). Naturally things turned messy and a lot of name calling hit social media. Very odd behavior. But even with turning back to His left leaning group, Elon is now persona non grata. Oh well, one day you’re in, one day you’re out.
Elon, we love you, we hate you, we love (?) you.
Speaking of odd behavior, and we were, what’s with bitcoin holders? A long long time ago (2009) when bitcoin was just a little ‘bit’ and traded at pennies, the early buyers were positive bitcoin would change the world. When it started trading at a dollar or so, price targets of $1,000, maybe $5,000 or totally crazy $10,000 were quietly uttered. Wow. Talk of when it would become mainstream and adapted globally ran amuck.
Then as regulatory clarity was deemed needed, price targets of $100K seemed doable. Well, here we are. Happy? Not so much. The original fans (fanatics) are now unhappy because bitcoin is not being “true” to it’s original mission; no government involvement. Oh boo hoo. Quit the whining and be happy with the success. Talk about really odd behavior.
Really REALLY odd? When, and how, did fighting to enforce illegal activity come about? Very confused.
So what is this odd behavior? Being unhappy when everything goes right? Shouldn’t happy be in order? Not liking (hating actually) someone who is doing what everyone said they wanted, but aligned with someone (Trump) many hate, seems very VERY odd. Financial markets are more influenced today by political affiliations and personalities rather than economic factors. But, it is what it is…..VERY ODD.
Understand now why Elon is in a rush to get to Mars?
Bill Taylor is the CEO and Chief Market Strategist at Digital Wealth News, offering expert insights on markets and asset classes. A proud Horned Frog and Texas Christian University grad, he played college basketball while there. With a strong finance background and passion for digital innovation, Bill shares thought leadership on market trends and portfolio strategy.
