Three things you need to know today…

1. Newsmax skyrockets 2000% after its IPO.

You just have to smile at the madness of markets sometimes.

Here we are, all worried about tariffs and Trump and the Aussie election…and a recent US IPO goes up 2000% in two days.

Yep, no kidding.

The company is called Newsmax. It’s a conservative news channel, and apparently devoted largely to Donald Trump. They’re gunning for Fox News.

It’s IPO was at US$10 per share. It hit US$210 at one point in US trade overnight.

$10,000 would be worth $210,000 at that return.

I’ve never heard of Newsmax before. I’m not saying I or you should or could have been on it.

But it does demonstrate that individual shares can go completely bananas whatever is going on in the wider world.

Clearly, anything considered in the graces of the US President could go electric.

Watch out for the next one. The herd could barnstorm into lots of different shares, on these grounds alone.

The converse is also true. Anything Trump doesn’t like or might go after could drop like a stone.

Whether this cult of personality is good for the USA and the world remains to be seen.

There’s something else we might take away from all this.

See this…

In other words, we’re having a flash of Tulipmania.

This is interesting in the context of market psychology. The USA has been like Australia recently, in that the IPO market has been pretty dead.

Now suddenly we might see a flood of IPOs in the wake of Newsmax.

That suggests the market could be going into some sort of ‘melt up’ dynamic where investors start chasing anything that looks good, even if they don’t understand most of it.

That doesn’t jibe with the bearish headlines and gloomy recession talk. But money talks, and bullshit walks.

The Newsmax bubble says the crowd is getting restless for action.

I tuned into my colleague James Altucher this morning, as part of a regular zoom call.

We were all astonished to find he was part of an investment group that bought into Newsmax before it floated on the market.

They’ve already sold. They didn’t get the entire Newsmax rise, but a decent chunk of it.

No wonder he keeps saying to buy up prospective AI shares on the market. The herd could plough into any of them at any moment.

Get the hitlist here.

2. Meanwhile, over in China…

Trump can put tariffs on Chinese goods entering the United States. He can’t control anything that goes on inside China.

And there’s plenty of tech innovation happening here. Arguably, more so than the US!

Case in point:

China just approved flying autonomous taxis. This will include sight seeing tours.

Check out this image as a taste of what you might see on your next trip to China…

Incredible stuff. I had to get the train home from the MCG the other week after Hawthorn beat Essendon. One of those would have been super handy!

Here comes the most staggering part. There’s a small Aussie firm that could see a huge rise in revenue from this industry.

You see…

What begins in China will not stay in China forever. How long before these are flying around the world?

We have a global market in play here, and an industry that could run for years.

And a stock, right here on the ASX, that could ride it for years, if not decades. It’s all part of my new report I’m putting together.

Again, this is why I waste no time worrying about Donald Trump.

He’ll be long dead at some point… and there’ll still be flying taxis. Someone will be making money from them.

Tariffs, in contrast, could be here one day, and gone the next.

Invest accordingly, in my view.

3. By the way, we have some American colleagues visiting the Fat Tail office.

I was getting coffee with one of them yesterday.

I said to the barista, ‘He’s American. Feel free to charge him 25% extra.’

He didn’t laugh.

Best wishes,

Callum Newman,
Editor, Small-Cap Systems and Australian Small-Cap Investigator

PS. Don’t forget to tune into my colleague James Altucher and what he’s saying about the “wealth window” forming now. This is around the second wave of AI share market winners brewing.

AI, like gold, is not something that’s going to reverse tomorrow. It could run for years, if not decades, in the same way social media has driven US stocks like Meta for over a decade now.

Believe it or not, they laughed at Mark Zuckerberg when Facebook listed on the share market. No one’s laughing now, as Facebook became one of the greatest businesses in history.

We could see a repeat with AI. Get what you need to know here.

***

Murray’s Chart of the Day
— Telstra Group [ASX:TLS]

By Murray Dawes, Wednesday, 02 April 2025

After three years treading water, you would be forgiven for thinking that Telstra is the world’s most boring stock.

But there has been some movement at the station and the long-term chart is starting to look interesting.

In the chart above you can see two waves traced out from the low hit in 2018.

The current rally from mid-2024 is starting to look like the beginning of the third wave higher.

$4.46 was the high reached in June 2023. Prior to that high TLS hasn’t traded at $4.46 since June 2017.

The long-term trend recently turned up and the buying pressure is building, with Telstra running from $3.85 to $4.31 over the last couple of months.

The third wave higher in a major change of trend is often the most powerful one that surprises to the upside.

I don’t think it will be long until Telstra is testing major resistance at $4.46 and above there it is blue sky.

Regards,

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps