Elon Musk for example doesn’t have the ability to shift his investment style without triggering massive outflows from his ETFs and causing their remaining assets under management to collapse. His only option at this point is to hope for hyperinflation and continue pumping Tesla and Bitcoin even though he is smart enough to know that without hyperinflation they have both already peaked. With Tesla, now that retail investors have gone all in… there is not enough money left on the sidelines to drive it any higher. Bitcoin interestingly is the exact opposite, retail investors were the first to buy… but now that institutions have gone all in… there is not enough money left on the sidelines to drive it any higher. Of course, with enough money printing, anything is possible… but we would view a rally by Tesla or Bitcoin to higher highs within the next few months as being so extremely problematic that it will scare the Fed into immediately hiking the Fed Funds Rate significantly higher.
