Everything is overvalued in the market !!!!
JuiceBox69
Fucking on Young N Dumb Chicken Heads
With exception to the banking and oil industries
Why is this can some one help Me understand?
Why isnt it sky high like the other sectors ? Is it just time to buy these ?
Or is their and underlying issue that actually makers these a trap ?
Why is this can some one help Me understand?
Why isnt it sky high like the other sectors ? Is it just time to buy these ?
Or is their and underlying issue that actually makers these a trap ?
Got something to say?
Start your own discussion
37 comments
Don’t expect that to happen anytime soon but while you’re waiting, keep your eyes on the skies and watch for flying pigs.
Allow me to answer your questions:
Everything Is Overvalued In The Market !!!!
With exception to the banking and oil industries
Why is this can some one help Me understand?
Because the stock market is rigged.
Why isnt it sky high like the other sectors ?
Because the stock market is rigged.
Is it just time to buy these ?
If you don’t have the “inside information” it’s up to you to take the risk.
Or is their and underlying issue that actually makers these a trap ?
The underlying issues is that:
The market is rigged and only “insiders” know information before anyone else.
The “insiders” make the money without any risk at all and the non insiders fall into the trap of taking the risks.
Think of casinos in Las Vegas, the “House” has the advantage so most gamblers loose.
Of course a few gamblers win a few times, this make some people fall in the gambling trap.
Imagine a shitty company, dunno like Party City or something. In a healthy market, if they go bankrupt their assets are sold off and if there is a market demand, a new better company will emerge from the ashes. Any employees that lost their job can get another retail job somewhere.
In a desperate Trump/JPow market, If Party City was at risk of bankruptcy, they could offer like....30 year 10% bonds. Pure junk. Nobody would buy them except...enter the Fed. They will gladly step in, add the dogshit bonds to their (7+ trillion) asset list and keep Party City afloat. So the employees can keep their jobs. Jobs that pay less than unemployment (which is another huge fucking issue).
Basically, stocks really do only go up right now until they don't and it will be devastating and quick. I am far too dumb to time that and honestly am in cash right now cause the market is giving bipolar signals.
TLDR: SPY Jan/21 340c, SPY Jan/21 240p who the fuck knows
That might work this time. Or, it might not. But, if you make this a habit, you will under perform the market over the long haul.
Timing the market is a bit like playing a slot machine with bad odds. You’ll sometimes win but mostly lose. You’ll remember and brag about the wins. You’ll delete the losses from your memory bank.
If you can buy some rental property, the interest rates are low and you can have the property paid by the renters and have positive cash flow with the right amount of down payment.
There is going to be a devaluation, because of the enormous amount of money the government is printing.
Good luck on your investments.
Yeah I've been giving that some major consideration as I do have a long term mind set to this.. I basically use Warren Buffet's system.
But Buffet himself is pulling out and holding cash so it got me all WTF.
I do like the idea of added another rental to my portfolios
Current have 2 $285,000 homes.. Could def added a 3rd with recent profits
I wouldn’t buy real estate in a major urban area right now. But, oddly, the Minneapolis real estate market is booming right now with tight inventory. I can’t explain it.
"The president and his economic team (chiefly Larry Kudlow and Steve Mnuchin) gave us historically low unemployment pre-pandemic. They also gave the economy a fighting chance to survive an economic shock not seen since the Depression.
"They did it by doing the exact opposite of what Herbert Hoover and then FDR did (and Joe Biden would do if he’s elected): Instead of raising taxes, Team Trump cut them. Instead of burdening businesses with regulations, Trump continues to push for fewer regs. Instead of engaging in a trade war, Trump has admirably avoided one, particularly with China.
"And instead of raising interest rates, as the Fed did following the 1929 crash to clamp down on speculation, Fed chief Jay Powell is slashing them left and right, encouraging speculation that has the stock market recovering nearly to the place it was pre-corona."
SMH
"... There’s nearly $5 trillion parked in money markets as many investors are still afraid of stocks ..."
https://www.cnbc.com/2020/06/22/theres-n…
Of risk you can handle throughout either bad markets or good markets, and ride it out!
Either way one has to make a rough choice and ride it out
Banks and oil suffer from the same condition, which is a certain reliance upon the health of the economy. Now as we all know from several economic cycles, these things will eventually come back, but the big question now is how long it will take. With all the market volatility plays available right now many don't have the patience for a multi-year buy and hold strategy.
BAC is a good example. I bought it for under 10 in 2012 when the market price nosedived for the second time in 3 years. I sold it well north of $20, but I had to wait over 4 years. In hindsight I wish that I had held onto it for longer as it got stronger with its continued expansion into securities trading and underwriting.
RCI, OTOH, is a great example of the numerous market volatility plays available. It craps out and then shoots up with great frequency. From watching its absurd trading patterns over the years I have always suspected that there is someone behind the scenes propping the price up when it goes too low. So I buy it when it craps out and sell it shortly after the price inexplicably rises by a double digit % within a couple of weeks. my last 2 week turnaround netted me almost 14%. Rinse, repeat.
In this environment, keeping a % of the portfolio for LT value plays and a % in volatility plays is working out quite well. But as you rightly point out, the value plays are slim pickins.
The big secret, is stocks are no different than widgets. If there are only 186M shares of Tesla, the supply is limited. If you go back to econ 101 and draw a supply/demand curve, what happens when the supply remains the same but the demand increases? Price has to increase. Doesn't mean anything else happened to make the widget, er share, more valuable except increased demand. Reverse when stocks/goods go down. People are trying to put their money into stuff that pays quick. Chasing the dragon after the easy returns of the last few months.