‘Watch out Tesla believers’: Critics are piling on to warn the 300% stock rally will crash and burn

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  • Tesla shares have soared 300% in six months, hitting an all-time high of over $900 on Tuesday.
  • Investors, analysts, and politicians are warning investors the rally won’t last.
  • “I have no doubt it will end in tears for many people,” one investor said.
  • Visit Business Insider’s homepage for more stories.

Tesla shares have surged about 300% in the past six months, hitting an all-time high of over $900 on Tuesday. Traders, analysts, and politicians are lining up to warn investors that the run up won’t last.

“This is obviously a computer-generated rally, it’s not a reflection on the company, or on valuation. It’s just a trade,” Andrew Left, the activist short seller behind Citron Research, told MarketWatch this week.

“Yes, I’m shorting it … whoever bought it at these prices has to flush it out, and when it flushes, it’s going to flush hard,” he added.

Left’s comments came after Citron blasted the stock rally as unsustainable.

“We believe even Elon would short the stock here if he was a fund manager,” the equity-research publisher tweeted on Tuesday. “This is no longer about the technology, it has become the new Wall St casino.”

Others have warned Tesla’s rally will hurt those left holding the stock when the music stops.

“This is an incredibly dangerous place to be buying the stock and I have no doubt it will end in tears for many people,” trader and analyst Jani Ziedins wrote in a recent post on his Cracked Market blog.

“Owning a stock that’s tripled over the last few months is great, but don’t mistake serendipity for skill,” he continued. “While the fools are spending all of their time daydreaming about what they will buy when the stock breaks $1,200, smart money is selling their stock to those greedy dreamers.”

Matt Maley, chief market strategist at Miller Tabak, echoed those sentiments in a CNBC interview this week.

“This is taking Tesla well above a level that would be supported by its current fundamentals,” he said. “The stock is going to get absolutely clobbered at some point before long.”

Even former presidential candidate Ralph Nader sounded the alarm, warning Tesla could take down the entire stock market.

“When the stock market bubble implodes, it will have been started by the surge in Tesla shares beyond speculative zeal,” he tweeted.

“Watch out Tesla believers,” he added in a follow-up tweet.

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Drugs, death and stock trading – what became of the Goonies child stars | Buzz.ie

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Produced by Steven Spielberg, and directed by Richard Donner, The Goonies has become a Sunday afternoon TV classic – but 35 years on, what has become of its amazing cast?

Child stars may seem to have it all but the pressures – and dangerous opportunities – of fame can be a toxic mix when you’re at an impressionable age.

Adventure comedy classic The Goonies was released in 1985, and the past 35 years have been something of a rollercoaster ride for its young stars Sean Astin, Josh Brolin, Corey Feldman, Jeff Cohen, Jonathan Ke Quan, Kerri Green and Martha Plimpton.

And let’s not forget John Matuszak’s memorable turn as Sloth

Some Goonies alumni have managed to maintain steady showbiz careers, some have tasted the dark side of fame, and a few have turned their backs on show business altogether.

24 Martha Plimpton today is barely recognisable as the young girl who lost her glasses in the secret cave (Image: Dave Benett/Getty Images)

Sean Astin (Mikey)

Sean is a Hollywood baby, son of Valley of the Dolls star Patty Duke and adoptive son of her husband – Addams Family star John Astin.

The Goonies was Sean’s first film, and after that, he went on to appear in a string of movies, including War of the Roses, Memphis Belle and Toy Soldiers.

Abuse Sean Astin is still acting today (Image: Warner Bros.)

He achieved new levels of fame when he played Sam in Peter Jackson’s Lord of the Rings Trilogy forming a lasting bond with co-stars Elijah Wood and Billy Boyd.

Since Lord of the Rings, Sean’s main success has been in TV. He’s added a second string to his acting bow with a number of high-profile voice acting rifles in animated series as well as showing up in Stranger Things, Supergirl, 24 and The Big Bang Theory.

act Sean’s best known for his work in the Lord of the Rings saga (Image: FilmMagic)

Sean’s personal life seems to have been relatively trouble-free. he married former beauty queen Christine Harrell in 1992, taking her Lutheran Christian faith in 2013, and they have three daughters together.

While younger readers may have no idea what The Goonies even was, they’ll know Sean as the voice of Reginald from Minecraft.

Martha Plimpton (Stef)

Martha is another Goonies star who just kept going. As well as starring in hit US sitcom raising Hope she’s appeared in everything from The Good Wife to Frozen II.

She’s had her greatest successes on stage though, receiving three consecutive Tony Award nominations and starring in innumerable Broadway hits.

Like Goonies co-star Sean Astin, Martha also pops up as a character voice in Minecraft.

actor These days, Martha focuses on stage work (Image: Warner Bros)

Corey Feldman (Mouth)

Corey Feldman became an Eighties icon. Alongside his showbiz mate Corey Haim, he appeared in cult vampire movie The Lost Boys as well as its belated sequel The Tribe.

The pair also appeared together in a fictionalised reality show – The Two Coreys – where the pair pursued an Odd Couple relationship with Feldman coming across as relatively clean-living and Haim playing the slob.

age Corey Feldman struggled to cope with the pressures of child stardom (Image: Warner Bros)

Haim’s hedonistic lifestyle caught up with him in 2010 when he died aged just 38. Feldman too has had problems with booze and drugs. By the time he was 19, he’d been arrested three times for heroin.

Feldman has hinted, more than once that the reason he and Haim were driven to drink and drugs was a secret subculture of abuse in Hollywood.

All Corey says that dark forces in Hollywood are out to get him after he spoke out about a paedophile ring (Image: Getty Images)

In 2013, he told US TV’s The View (their equivalent of Loose Women) that a massive organised paedophile ring wielded massive power in the entertainment industry.

Feldman was also a close friend of Michael Jackson, who invited him to his Neverland estate and showered him with expensive gifts. But, he insists, the disgraced star never approached him sexually.

Josh Brolin (Brandon)

amazing Josh is the son of James Brolin, star of the original Westworld (Image: Warner Bros)

A Hollywood wild child, Josh Brolin ran with a rough crowd in his youth. He stole cars to pay for drugs, and had a flirtation with heroin.

He said: “I mean, I never got into it and I never died from it, which is a good thing. I’ve had 19 friends who died. Most of those guys I grew up with, they’re all dead now.”

avengers Josh Brolin grew up with a movie star dad, but had a troubled childhood before finding his feet as an actor (Image: Getty Images)

Brolin survived and went on to have a long and successful career in movies. Debuting in The Goonies he has appeared in No Country For Old Men, Sicario, Deadpool 2 and as Thanos in the massively successful Avengers series of films.

He also has a sideline trading in stocks and shares, and even considered giving up movies for the stock market at one point

Jonathan Ke Quan (Data)

Jonathan was already famous when The Goonies opened, having played Indiana Jones’s sidekick Short Round in the Temple of Doom.

While he continued to act for a while after Goonies, he increasingly used his martial arts knowledge to pick up work as a fight choreographer.

baby Jonathan was the highest-profile member of the Goonies gang when the film opened (Image: Warner Bros)

Kerri Green (Andy)

Kerri, like many of the Goonies stars, made her debut in Steven Spielberg’s treasure-hunting comedy thriller.

But, unlike some of her co-stars, she struggled to sustain her early success. She earned good reviews for her role in romcom Lucas, where she played opposite Cory Feldman’s partner in crime Corey Haim, but after that, the big roles dried up.

Beauty Kerri spends her time writing and directing these days (Image: Warner Bros)

She made a few appearances on TV shows such as Murder, She Wrote and ER, but hasn’t done much acting since the 1990s.

Kerri spends her time behind the camera these days, with her own production company and a series of writing and directing credits.

Jeff Cohen (Chunk)

Jeff was suffering from chickenpox when filing on The Goonies started but kept quiet about it to avoid being dropped from the production.

broadway Jeff worked hard to slim down after The Goonies (Image: Warner Bros)

After the film wrapped, Jeff got heavily into college football in a bid to shed some of Chunk’s weight. He made a few more movies but then, according to a 2014 profile, “puberty hit and forced Cohen into early retirement.”

He moved from acting to entertainment law. Partly, he says, “because I get to go to the parties but I don’t have to audition.”

business Today, Jeff is a hugely successful media lawyer (Image: Getty Images)

John Matuszak (Sloth)

Older than most of the other Goonies stars, Matuszak was already an established American Football player when the call came to play disfigured misfit Sloth in The Goonies.

camera John Matuszak (Sloth) Older than most of the other Goonies stars, Matuszak was already an established American Football player when the call came to play disfigured misfit Sloth in The Goonies.

The makeup, which took five hours to apply every day, disguised his appearance but Matuszak’s own face appeared in countless TV shows such as M*A*S*H, The Dukes of Hazzard, The A-Team and Miami Vice.

Tragically, Matuszak died young – succumbing to a mix of opioids and cocaine in 1989. He was 38.


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Interest rates: Powell tells Congress federal debt is ‘unsustainable’

Powell: U.S. debt is ‘on unsustainable path,’ crimping ability to respond to recession

Federal Reserve Chairman Jerome Powell warned lawmakers Wednesday that the ballooning federal debt could hamper Congress’ ability to support the economy in a downturn, urging them to put the budget “on a sustainable path.”

Powell suggested such fiscal aid could be vital after the Fed has cut its benchmark interest rate three times this year, leaving the central bank less room to lower rates further in case of a recession.

“The federal budget is on an unsustainable path, with high and rising debt,” Powell told the Joint Economic Committee. “Over time, this outlook could restrain fiscal policymakers’ willingness or ability to support economic activity during a downturn.”

Powell also reiterated that the Fed is likely done cutting rates unless the economy heads south.

“The outlook is still a positive one,” he said. “There’s no reason this expansion can’t continue.”

The testimony marks a more aggressive tone for Powell, who generally has steered clear of lecturing lawmakers on the hazards of the federal deficit. But after raising its key rate nine times since late 2015, the Fed has lowered it three times this year to head off the risk of recession posed by President Donald Trump’s trade war with China and a sluggish global economy.

Those developments have hurt manufacturing and business investment while consumer spending remains on solid footing.

The Fed’s benchmark rate is now at a range of 1.5% to 1.75%, above the near-zero level that persisted for years after the Great Recession of 2007-09 but below the 2.25% to 2.5% range early this year.

“Nonetheless, the current low-interest-rate environment may limit the ability of monetary policy to support the economy,” Powell said.

Noting the Fed has lowered its federal funds rate an average 5 percentage points in prior downturns, Powell said, “We don’t have that kind of room.” He added, “Fed policy will also be important, though,” if the nation enters a recession. Fed officials have said they still have ammunition to fight a slump, including lowering rates and resuming bond purchases.

Meanwhile, the federal budget deficit hit $984 billion in fiscal 2019, the highest in seven years, and it’s expected to top $1 trillion in fiscal 2020. The federal tax cuts and spending increases spearheaded by Trump have added to the red ink and are set to add at least $2 trillion to the federal debt over a decade. The national debt recently surpassed $23 trillion.

“The debt is growing faster than the economy and that is unsustainable,” Powell said.

He added that a high and rising federal debt also can “restrain private investment and, thereby, reduce productivity and overall economic growth.” That’s because swollen debt can push interest rates higher.

“Putting the federal budget on a sustainable path would aid in the long-term vigor of the U.S. economy and help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy if it weakens,” Powell said.

He added, “How you do that and when you do that is up to you.”

Many economists are forecasting a recession next year, though the risks have eased now that the U.S. and China appear close to a partial settlement of their trade fight and the odds of a Brexit that doesn’t include a trade agreement between Britain and Europe have fallen.

Powell also said the Fed is unlikely to reduce interest rates further unless the economy weakens significantly – a message he delivered after the central bank trimmed its key rate for a third time late last month.

“We see the current stance of monetary policy as likely to remain appropriate” as long as the economy, labor market and inflation remain consistent with the Fed’s outlook, Powell said.

Since last month’s Fed meeting, the government has reported that employers added 128,000 jobs in October – a surprisingly strong showing in light of a General Motors strike and the layoffs of temporary 2020 census workers.

“There’s a lot to like about today’s labor market,” Powell said. He noted the 3.6% unemployment rate, near a 50-year low, is drawing Americans on the sidelines back into the workforce. And while average yearly wage growth has picked up to 3%, it’s lower than anticipated in light of the low jobless rate. Inflation, he said, remains below the Fed’s 2% target.

“Of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly,” Powell said.

Sen. Ted Cruz, R-Texas, tried to coax the Fed chief into weighing in on the potential economic impact of “a massive tax increase,” which some analysts say could be required by several Democratic presidential candidates’ proposals for universal health care or free college tuition.

“I’m particularly reluctant to be pulled into the 2020 election,” said Powell, a Republican and Trump appointee who has been repeatedly attacked by the president for not cutting interest rates more sharply.

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