Hi, I’m Dr. Parik Patel, BA, CFA, ACCA, Esq. If you don’t know me already, I’m a Chartered FinMeme Analyst (CFA) with a particular expertise in #stonk valuation (pro-tip: just multiply by two). Anyways, I’ve been told that I have a particularly special insight into the world of finance and memes, so the team at Bullish asked me to create a regular round-up to help explain what the hell happened this week… and then offer my “diagnosis” of the virality.
This week was once again a crazy week, with the luck of the Irish possibly playing a key role in reversing a stock decline. Treasury yields are once again at the fore of investors’ minds as the 10-year yield continues to climb higher. Finally, Elon Musk made yet another splash in the zeitgeist after renaming himself the “Technoking of Tesla.”
Once again, big stuff is going down, but what does it all MEME? Without further ado, let’s dive into Dr. Parik’s Meme Diagnosis of the Week…
Image via @WallStMemes
Summary: Treasury yields were once again at the fore of investors’ minds as the 10-year yield just continues to climb higher. The selloff in bonds comes as inflation concerns — linked to the economic reopening and new stimulus package — make fixed income far less attractive. As treasury yields rise, discount rates go up, thereby putting pressure on equity valuations.
Dr. Parik’s Diagnosis: I really struggle with the idea that just because a bunch of boomers are obsessed with bonds, we should all suffer with stocks going down. The role of the Fed is not to control inflation; it is to make stocks go up.
Image via @RampCapitalLLC
Summary: St. Patrick’s Day got off to a rocky start as the surge in treasury yields led to an early dip in richly valued tech-stocks, with the Nasdaq 100 index down 1% upon opening. Thankfully, the luck of the Irish came into play, and all the major indices closed in the green. A true St. Patrick’s Day miracle.
Dr. Parik’s Diagnosis: Time and time again, I have reiterated that since stocks only go up, it is always a good idea to just buy the dip. And once again, I was proven right. I don’t have that CFA after my name for nothing, y’know…
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Image via @DougBoneparth
Summary: Robinhood got into a little hot water recently after incentivizing customers to deposit their newly-arrived stimulus checks into the app’s brokerage accounts. The company was offering up to $250 “as a reward” for net deposits over the next two weeks. Critics viewed this as the company incentivizing gambling, and suggested that it was no different from when casinos send coupons in the mail.
Dr. Parik’s Summary: As a CFA, I am always on the lookout for low-risk returns. Personally, I would deposit the money, receive the reward, and then immediately withdraw. Brokerages HATE this simple, three-step trick!
Image via @ParikPatelCFA
Summary: This column would not be complete without a mention of Elon Musk. The eccentric Tesla executive delighted the meme community once again after dropping his CEO title and crowning himself “Technoking of Tesla.” His CFO Zach Kirkhorn also renamed himself “Master of Coin,” a nod to the company’s $1.5 billion Bitcoin purchase earlier this year.
Dr. Parik’s Diagnosis: A lot of people hate on Elon Musk for his erratic tweets and bizarre comments, but he’s not the second wealthiest man in the world for nothing. I, for one, like the meme. All hail the Techno King…
So there you have it! That was the week in memes. Now here’s what the doctor is prescribing:
- Fuck treasury yields. All my homies hate treasury yields.
- Keep buying the dip
- Call yourself an eccentric name to improve shareholder value
~ Dr. PP out