Changing market dynamics

There are some very interesting shifts happening in the markets atm.

TTT provides a perfect example of why many argue the public equity markets are broken in many instances.

With global interest rates at multi decade lows private equity markets have started to become far more available to smaller investors. Many argue that this is a slippery slope but this isn't necessarily the case but merely a function of conditions being ripe to break open a cosy little niche that has only been available to the few. Companies are quickly realising that there is a vast pool of capital available at attractive cost. There are many papers written showing that private equity is a much better investment than listed markets for a bunch of reasons but primarily because you don't get sufficient compensation for px volatility (this far outweighs liquidity risk).

So back to TTT. If I had invested in TTT on the day it floated but hypothetically it was a seed/pe raising I would have expected no more than 6 monthly updates at best. Every update I had received would have left me feeling very happy with my investment based on a long term vision of where it was going and a belief that it had ticked every milestone rather than meeting the "heroin hit" calls from investors at a minimum 4C qty release (if not shorter demands). Listed markets seem to be getting far worse at assessing asset values if companies especially the smaller ones. It is completely illogical for some of the px moves we see relative to no meaningful news. Algorithmic trading by its very nature has no regard for assessing asset value. Are these companies really worth say 50% less over a month on no news? These are hard asset companies the same as real estate. You don't see someone selling a $1mio dollar house for 500k and then see it worth $1mio again in say 6 months time.

It will be interesting to see how this all plays out over time but it is definitely a paradigm shift and the real secret is to try and maximise returns by understanding fully how these dislocations really manifest.