Before I say anything, this is just my opinion, you can agree or disagree, I am not trying to predict anything.
First, lets talk about individual stocks, apple up 21% in 20 days, 15 trading days. Biggest since 2003, why? No reason, apple is a great company but this recent run was not stimulated by anything. Tsla, missed delivery, ran 51% in the past 22 days. I cant think of anything but a pump. People buy tesla because its elon and because its tesla, but u cant really think thaflt this price is a fair reflection of the company.
Now the markets in generla. S&P 11% run in 15 days, sitting at 4% of ath. Nasdaq 17% run in 15 days, sitting at 9% of ath.
I cant see a legitimat reason for such optimism, inflation is highest since 1987, oil prices are up 56% since december. Fed has just hinted more aggresive interest hikes.
I think this is happening becauwe of the fear. Think about this, when inflation is 8% and is projected to be much higher, you wont be buying 5 year bonds for 2.6% gain. The only investment that can beat this inflation is stocks, as we have seen u could have made 17% with nasdaq if u bought is 3 weeks ago.
These companies are obviously overbought, but this creates more opportunities, think about this, if evertyhing traded at its value the only way to make money would be long term investing.
Remember a year ago ev stock ran 300%, rhey dident have to be profitable, have a plan, or any product. They just needed to be ev. I mean how do u ration buying a company valuet at 9B with 0 earning and no product.
And even gamestop, its not a company but a stock, the company is trash but the stock is great.
I am not predicting any crash or recession because its imposible. But such discrepancy between price and value is unprecedented.
Submitted April 05, 2022 at 12:43AM by Mundane-Leave-8298
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