Market Update

Happy Friday,

On this day in history, February 5th, 1637, the infamous tulip bulb bubble reached its peak. The Dutch tulip bulb bubble of 1637 is often considered the first ever speculative financial market bubble and is still referenced to this day as one of the best historical examples of irrational investor behavior. The bubble formed after The Dutch Republic created a futures market for tulips in the 17th century. By the time the market peaked in February, the price of some single tulip bulbs had reached more than 10 times the annual income of a skilled Dutch craftsman. At one point, one buyer reportedly offered 12 acres of land for a single bulb. Good thing we’ve come so far in the last 384 years and don’t have bubbles anymore.

Economic Data Today:

News of the Day:  

Moderate U.S. job growth in January bolsters case for large stimulus package – https://www.reuters.com/article/us-usa-economy/moderate-u-s-job-growth-in-january-bolsters-case-for-large-stimulus-package-idUSKBN2A50EZU.S.

House plans vote to advance Biden’s $1.9 trillion COVID aid package – https://www.reuters.com/article/us-health-coronavirus-usa-congress/u-s-house-plans-vote-to-advance-bidens-1-9-trillion-covid-aid-package-idUSKBN2A514V

Other News & Blogs:

Ben Hunt – Hunger Games – https://www.epsilontheory.com/hunger-games/

Morgan Housel – Unfortunate Investing Traits – https://www.collaborativefund.com/blog/traits/

Great Twitter thread explaining the DTCC and why trading in GME etc. was actually inhibited: https://twitter.com/KralcTrebor/status/1354952686165225478?s=20

Weekend Podcast Recommendations:

Animal Spirits – The Big Squeeze – https://open.spotify.com/episode/7gHBzYU0f6CVCXGG8n7xkV?si=6vuK4BZ9QeWhidLlBzTziQ

Animal Spirits – Commission Free Insurance (Cool idea!) – https://open.spotify.com/episode/40AEDuBlUYB0yMdjsGYNe9?si=vupIMfxFRByOB-mwZ69oUAHave

Michael Saylor & Ross Stevens on the Institutionalization and Technology of Bitcoin – https://www.youtube.com/watch?v=wA_fI-wUqnw

Have a very tight weekend buying bitcoin.

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