Sell in May and go away is the old adage and for another year it seems likely to come true!
Elon Musk's Tesla has long been a favourite in the US markets. beating the competition with technology and Musk's appeal as a real superhero character complete with many flaws.
In January Tesla hit an all time intraday high of $900 per share, today it is heading down to $600 and rapidly, taking the shine of the US tech stocks as the recovery takes hold.
But of course there is more to it than that, Musk promoted Dogecoin and Bitcoin and has also announced he won't be taking bitcoin as payment for cars anymore due to environmental concerns. This has pegged Bitcoin 10%+ too and taken the steam out of the crypto bubble.
In China, Trump had slapped on a 25% tax on Chinese electric imports. Forced to sell more cheaply in their home market, Chinese EV cars have started to take huge bites out of Tesla sales, down as much as 67% this quarter.
This could be the start of a big-rework in the US and world markets. As the vaccinated world returns to something like normality, out of favour leisure, travel and hospitality stocks will see a resurgence as will say office space. The stay at home robinhood investors will return to the real world - they may buy real world assets for a change or drop out of their gambling habit.
With recovery not yet baked in, I don't see a recession any time soon, but that does not mean the markets can't fall as the great reset into Value takes place? Tesla won't be coming back up to its all time highs if this comes to pass.