KidsPicAtDL_edited_edited_edited.jpg
Copy of SM Blog Banner (3).png

The definition of genius is taking the complex and making it simple.” ― Albert Einstein

Elon's Twitter Buyout Offer... The Market Top (Or At The Least A Sign Of What Is To Come)

June 2nd, 2022

On April 4th, the S&P 500 Index (S&P) closed at 4,582, less than 5% off its historic highs. At the time, this somewhat benign drop could have been viewed as 1) A short-term blip, and we would soon be heading higher in no time, or 2) The beginning of a stock market correction as higher inflation reared its ugly head, forcing the Fed’s hand to raise rates. Either direction was plausible.

 

Another newsworthy event took place on this date. Elon announced (via Twitter, no less) that he had amassed a 9% stake in said company, foreshadowing what was to come… a buyout offer for all of Twitter! This event at the time and now could only be viewed one way… Crazy. I would venture to say this was the jump-the-shark moment for the “easy money” stock market of the past two years (or, shall I say, the past decade-plus). Did Mr. Musk call the proverbial top of the market with his outrageous buyout offer...