akikostas

Matter Matters

akikostas Updated   
BATS:BRK.A   Berkshire Hathaway Inc.
Markets are liquid. Liquids, by definition, move.

Some of them have moved tremendously well.
These liquids got so strong that they are now considered to be gasses.
Unfortunately for them, gasses are not very dense. They are light and weak.

Apple is the prime example of this important paradigm change.
Until ~2005 Apple tried to strengthen and it magnificently did. It reached the optimal point in its cycle. It began as cold hard ice which is hard to move and turned into dense water. In the last 20 years Apple (and many others) turned into hot liquids that have the risk of evaporation into gas.

Now these hot markets are reaching the end of their cycle...
Gases reach the upper levels of the atmosphere. There they can only turn into rain, or escape into space. Either one of them is bad for markets.

The birthplace of bull markets are rivers lakes and oceans. The end of their life is up in the skies. Market Cycles are just like Water Cycles. They cannot escape the cycle.

Hot markets can only get colder. Remember, space is very very cold and can easily turn growing gasses into falling rain. Investors are now beginning to fear.

And so, they fly to safety. One of these safe havens is Gold, which has performed incredibly these past few months. Inside the equity market however, there are stocks that begin to exhibit incredible signs of resilience (coldness) like BRK.A

Has Berkshire reached the "island of stability"?
If we plot a volume-weighted candle chart, we realize that Berkshire Hathaway has created a massive plateau. A lake in the mountains. A place for investors to swim into.
With ongoing worldwide conflict, investments like these will definitely pull buyers towards them.

Apple is not the only weak. It is a mere example of the many "bubbling" companies that face issues.
Their growth was an example of easy money loose monetary policies. With high yield rates the survival of these bull markets is not guaranteed.

On the other hand Berkshire is not the only one that shows strength.
Companies like Exxon Mobil, an energy company, cannot be easily ignored.
Now compare this massive brick of volume to the following chart:
No words need be spoken.

Matter matters. Not all H2O is identical.

A solid investment needs ample liquidity and warm water.
A long-term investor may seek heavy icebergs, which may take years to melt.
A seller or a reckless trader may look into some of the innumerable gas giants to profit on.

Tread lightly, for this is hallowed ground.
-Father Grigori
Comment:
Buffett, the man behind BRK.A, has invested in literally all trading firms in Japan.
He will collect off of any investment that goes into that country.
From his actions we may conclude that Japan will become the World Trading Center.

... Let's just hope they don't have a 9/11 event.
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