Irrational exuberance 2020 style

N

NY_HOOD

i remember Greenspan making that famous remark in 1996. Well, i thinks it most aptly fits in todays market. Traders are supposed to acclimate and adapt to daily market moves. The market is ridiculously expensive and i am shocked the nasdaq basically regained all of its gains. All the so called experts said the market was very expensive in February before the pandemic when the job market and business forecast was very strong. How can they justify earnings estimates and valuations now and next year?
 
NY_HOOD said:
i remember Greenspan making that famous remark in 1996. Well, i thinks it most aptly fits in todays market. Traders are supposed to acclimate and adapt to daily market moves. The market is ridiculously expensive and i am shocked the nasdaq basically regained all of its gains. All the so called experts said the market was very expensive in February before the pandemic when the job market and business forecast was very strong. How can they justify earnings estimates and valuations now and next year?
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When you can explain to me how an analyst determines that zoom's PE ratio is 2300 and is taken seriously by a board of senior "experienced" investment bankers I'll eat my last trading statement.

Even for me, a guy who likes to take a position and HODL it for a while, there's really nothing for me either. I expect one of two things:

1. July earnings are an absolute bloodbath and the market corrects somewhere closer to it's actual value.
2. July earnings are cooked just like the unemployment numbers and dow breaks 30k making this the shortest recession in history.

Either way I love it when daddy fed hurts me.
 
So a few things to consider: 1) Fed is supporting the market; 2) Folks who followed the markets somewhat were working from home in March / April / May and saw stocks they know like AMZN, AAPL, NFLX, FB, etc. all selling at a discount and started buying them in their brokerage accounts WITHOUT COMMISSIONS; 3) folks at home who didn't follow the market opened brokerage accounts WITHOUT COMMISSIONS and started buying stocks - these include middle school and high school students! And as the market keeps moving up, everyone else has to buy stocks due to FOMO. In a nutshell, the demand side of the equation went up at an unprecedented rate due to folks having nothing else to do.
 
Professional writers and investors would say that.

Day traders don't bother about whether it is rational or irrational, exuberance or lifelessness.
Because their mind set is every trading day is a good day.
 
formikatrading said:
So a few things to consider: 1) Fed is supporting the market; 2) Folks who followed the markets somewhat were working from home in March / April / May and saw stocks they know like AMZN, AAPL, NFLX, FB, etc. all selling at a discount and started buying them in their brokerage accounts WITHOUT COMMISSIONS; 3) folks at home who didn't follow the market opened brokerage accounts WITHOUT COMMISSIONS and started buying stocks - these include middle school and high school students! And as the market keeps moving up, everyone else has to buy stocks due to FOMO. In a nutshell, the demand side of the equation went up at an unprecedented rate due to folks having nothing else to do.
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it all doesn't make any sense. retails doesn't have any power to move market even 1%

those folks, who have nothing to do, don't have any money

Buybacks were close to 1 trln per year and they managed to move market 10-15% a year

How much those retail put into the market 5 bln?
 
See dozu888 was right! Hope he survived the bloodbath down. I said he would be vindicated. Where are thou dozzy? You should be taking a victory lap....
 
kashirin said:
it all doesn't make any sense. retails doesn't have any power to move market even 1%

those folks, who have nothing to do, don't have any money

Buybacks were close to 1 trln per year and they managed to move market 10-15% a year

How much those retail put into the market 5 bln?
More...
Institutions...Institutions...Institutions
 
we can all agree that part of this is fueled by zero percent interest rates and investors whether professional or individual who are searching for yield can only go to one place, the stock market.
this is clearly a game of musical chairs.
 
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