30 January 2023 - Thoughts on the Market

This year the stock markets have started off with an explosive rally, with the Nasdaq, last year’s laggard, up almost 12% as of Friday’s close. To some extent, this rally has been led by short-covering, with a number of tech stocks staging astonishing recoveries. Tesla, one of my favorite shorts for a long time, has rallied almost 80% from its recent lows. Bed, Bath & Beyond, another stock I recommended selling over a year ago has rallied almost 40% from its lows. Meta, yet another stock that I loved to hate, is up over 74% from its lows in November, and almost 30% since the New Year. Apple, another struggling stock, is up over 18% from its recent lows, a relatively tame performance. The broader indices are also much higher on the year, continuing their strong rallies since last October.