Category Archives: Scarcity/Allocation
Things that’ll be “different this time” usually aren’t, especially when it comes to hot stoves, hot steering wheels, and hot bond markets. Touch ’em and you’ll get burned, or so goes the thinking.
Every once in a while, though, the situation plays out.
Take the inverted yield curve that caused last Friday’s vicious selloff and made countless headlines around the world when it happen for the first time since 2007.
Contrary to what Wall Street and legions of economists want you to believe, it may NOT be the harbinger of doom that it’s been for the past 50 years.
Investors are getting ready to throw billions of dollars at a company that’s not worth the cost of the paper its stock certificates will be printed on. Worse, this same company has just 4,000 employees and has lost $911 million…during the past 12 months alone.
I’m talking about Lyft, of course.
The ride-hailing service is billed as a lucrative side-hustle where anyone can make fast cash giving people a lift around town. You can use your own car, set your own schedule, and work whenever you want. Chances are you’ve either called Lyft or ridden in one of “their” cars. Perhaps you’ve even started your own side-hustle as a Lyft driver.
The hype surrounding its expected initial public offering, possibly on March 28th – just three days from now – is staggering. Many investors, of course, can’t wait to jump in.