Uber Technologies Inc., the smartphone-based cab hailing company that operates in 633 cities worldwide, announced this week it might be going public as early as 2019.
That gives the beleaguered private company, which has a reported $50 billion valuation, about a year and a half to get its house in order… And to hopefully sell shares to the public at a significantly higher valuation.
Good luck with that.
The once high-flying unicorn has made an ass out of itself and lost $3 billion last year. This company has probably blown its chances of selling itself to the public for a crazy valuation that it could have commanded years ago.
There’s a real, clear and present danger with more than $3.3 trillion parked in passive investing indexed mutual fund and ETF vehicles.
If something triggers so-called passive investors into actively dumping index funds they’re loaded to the teeth with, a black swan-like negative feedback loop could send stocks lower and lower and lower.
Here’s how dangerous things are, what could trigger initial selling, what a negative feedback loop would look like, what you need to watch out for, and how to prepare for what could turn into a market crash.
On Wednesday, I covered what makes these markets look safer than they really are.
They’re being lead ever-higher by behemoth leadership stocks while the VIX plumbs ever-lower lows. Investors are doing very little hedging. Some of the bricks-and-mortar retail companies we’ve targeted are getting an extension put on their death sentence as they’re being lifted with the rising tide.
But that doesn’t mean that these companies are suddenly better. And it doesn’t mean that the positions you are already in that are preparing for their demise are now worthless.
For months, I’ve been telling you that the markets are headed higher.
A side effect is that they would likely take some of our targeted bricks-and-mortar retail losers higher as well, making those crappy stocks appear ripe for a real turnaround.
That’s exactly what we’ve seen – an across-the-board rally that’s inflating the stocks we know are headed south.
Today, I want to take a deep dive into the market rally, tell you why some crappy retail stocks are going along for the ride, and show you why they will not continue to rise with the rest of the markets.