Well that was no small IPO that Elon pulled off last Friday and there is no pun intended.
He set his own price and it jumped 19% the first day and looks to increase in value this week.
Those who have had the belief in this man have been richly rewarded.
Ron Baron spoke on CNBC how Elon’s vision is so far ahead of the rest as to be shocking.
His belief is that Starlink will be the future of the internet.
Instead of hundreds of satellites a year, it will be thousands.
He projected there will be data centers in space in a little over two years.
This all seems so hard to believe, but Elon has beaten most expectations. The interesting part is that he always gets there, the timing however can be a bit
tricky.
The Baron fund is invested by over 30% in companies controlled by Musk.
That is like putting all of your eggs in one basket.
That is what happened Friday.
Over the weekend a peace accord was reached between the US and Iran.
The first impact will be opening of the Straits allowing the free flow of crude.
At the market’s opening, WTI dropped to $80 per barrel.
No one can predict what will happen with the peace accord, but a drop in energy prices will go a long way to stem inflation.
I doubt the Iranians doing anything they promise, but I do think they realize that the U.S. is not here to negotiate from a position of weakness.
I would say that should the elections end without a change of power, it might be a time for Iranian leaders to find another place to hide.
We will have the first meeting of the new Fed chair with the committee this week.
There will be all sorts of speculation on any change in interest rates this year.
No one is certain which direction rates will head. A tempering of inflation concerns may ease the calls for an increase.
I have found in my years on this sphere is that prices go up and hardly ever come down.
It does appear though that the economy is growing despite all the distractions.
On the heels of the SpaceX IPO, we will see Open Ai and Anthropic come to the market soon.
Some might wonder where all the money will come from to fund these new offerings?
There is a significant amount of cash still sitting on the sidelines and many will take profits already made and reapply those profits to new investments.
It is beginning to feel like the bears are being beaten back to the den to hibernate.
I have a concern that some promises from Space X will not meet the timetable promised.
That will be later, but there will be a time coming after about six months where some issued stock will not be restricted from selling.
That could put significant pressure on the price of SpaceX.
Never forget that the rise in the price of Tesla had many setbacks along the way.
I still believe in the man but no one is perfect.
Just look at Steve Jobs and Apple.
All I can say is that we are roaring into summer and it will only get hotter and I am not talking about the temperature outside.
But in that vein, we will hit the summer solstice next weekend.
Not sure this summer is one that we will be able to just kick back with a good novel and go, as they say in Europe, on holiday for a month or so.
You might do that but I believe you will miss more than usual.
