Adani Enterprises Chart: Redo of the South Sea Company Bust
“The easy-money exit ramps are closing”
by Bob Stokes
Updated: February 16, 2023
Most of us will never know what it feels like to lose $58 billion in just a week -- but Gautam Adani does.
A short time ago, the billionaire from India was the richest man in all of Asia, which is saying a lot. But, after a short seller"s report accused Adani of playing accounting games on Jan. 24, the stock price of Adani Enterprises went into a freefall. Of course, a short seller bets on the price of a stock to go down.
Adani denied the allegations, even so, the price of shares continued to plunge.
Our February Global Market Perspective (which published Feb. 3) showed this chart and said:
In the wake of the accusation, a sharp reversal in Adani Group shares makes it look suspiciously like that of the South Sea Company in July 1720. In response, The New York Times reported on [Jan. 31] that Adani had raised $2.5 billion "in a tricky share offering." [On Feb. 1], various headlines announced that the Adani Group abandoned its offering. The easy-money exit ramps are closing.
Our Global Market Perspective says that Adani is just one of a group of falling angels which have tumbled since the blue-chip indexes in the U.S. made their highs in January 2022.
Another individual whose image has certainly taken a big hit is Sam Bankman-Fried, the former head of crypto-exchange FTX.
As a Feb. 10 Politico headline asks:
Did Sam Bankman-Fried Just End the Era of the Boy Genius?
The kid billionaire made his carefully cultivated dishevelment an advertisement for crypto -- and himself. But now his image carries a different label: Fraudster.
Returning to the February Global Market Perspective:
There are many more falling angels, and the rogues" gallery of former heroes will expand fast as the bear market gets more serious.
Learn just how "serious" Elliott Wave International anticipates the financial downtrend to become by following the link below.
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