The ‘Don’t Worry, Be Happy’ Market - Fomo momo

Momentum investors, or momos.

Stocks go up because people see stocks going up and just have to buy them. Joe Six Stock gobbles up Beyond Meat, Palantir and everything AI because everyone else is buying. 

Yes, Fomo momo.

One of the world’s greatest investors, Stanley Druckenmiller, became a momo, and—give him credit—admitted it.

 “In 1999 after Yahoo and America Online had already gone up like tenfold, I got the bright idea at Soros to short internet stocks.” They quickly lost $600 million 

Instead hired “a couple of gunslingers” to buy dot-com stocks, resulting in an up year. 

Around March 2000 Anyway, I pick up the phone finally. I think I missed the top by an hour” and lost $3 billion.“ 

Leading up to 2008, the rest of Wall Street copied Bear Stearns and Lehman Brothers’ leveraged collateralized debt obligation (CDO) trades. 

Now we have crypto a go-go and 100x leverage on perpetual (perp) futures on crypto exchanges. 

What could go wrong?

Today, anyone who can spell AI is paying dearly for its future. Sure, AI is the greatest thing since sliced bread, but we probably don’t need 100 gigawatts of toasters paid for with datacenter-collateralized debt guarantees from toaster manufacturers—today’s circular deals. 

I’ve written before about a Headquarters Indicator: a company builds a lavish new headquarters and its stock soon peaks.

Last month, JP Morgan unveiled its new 60-story global headquarters in Manhattan. 

It’s probably nothing. Don’t worry. Be happy.

Andy Kessler WSJ Nov. 2, 2025

https://www.wsj.com/opinion/the-dont-worry-be-happy-market-96a63edc

 

‘I have no doubt, none whatsoever, that we are in a raging mania in all assets. 

I also have no doubt that I don’t have a clue when that’s going to end.’

Stanley Druckenmiller MarketWatch 11 May 2021

https://www.marketwatch.com/story/druckenmiller-still-long-the-stock-market-but-sees-raging-mania-in-all-assets-11620744622


“Who are you to know if a stock is cheap? Have you ever lived through a downturn?”

https://englundmacro.blogspot.com/2022/10/who-are-you-to-know-if-stock-is-cheap.html

 


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