Fidelity’s Blue Chip Growth Fund cut the value of its position in X by 5.7% in February, implying a 73% decline in the former Twitter Inc. since Elon Musk bought the social-media company.
Fidelity, which gained a stake in X by helping Musk complete his $44 billion purchase in October 2022, valued the position at $5.28 million as of Feb. 29, according to a report posted Saturday listing the fund’s holdings. A month earlier, the value was $5.6 million.
I’m not investor, but as far as I can tell, tech stock prices are based on magic. Look at the IPOs of Reddit and Truth Social.
It’s not magic and it’s not just tech stocks.
I didn’t mean literal magic. I meant magical thinking.
“Magical thinking” means something slightly different in psychology, having to do with personal agency. For example, the belief that rubbing a lucky charm will cause a stock price go up.
I think I prefer “animal spirits”, as per Keynes, which more or less means a desire to act based on irrational optimism. It’s closely related to the modern “FOMO” and “YOLO”.
it’s so insane to me that he titled his book “*The General Theory of Employment, Interest and Money”. so much confidence in his ideas.