Maybe Valuations Do Matter
Submitted by Jim Quinn via The Burning Platform blog,
The raging bulls were so sure of themselves a few months ago. Valuation measures were for suckers. This time was different. It’s the new Obama economy. Profits are so old school. I suddenly sense a little panic amongst the big swinging dick Wall Street traders. Not too much scorn and laughter being directed towards John Hussman lately.
I wonder if the brainless twits and shills on CNBC will be telling their audience that the S&P 500 is now lower than it was in May 2014. That’s right. Anyone in the stock market over the last 20 months hasn’t gained a penny. The S&P 500 is now down 11% from its all-time high in May 2015. Only 40% or 50% more to go to reach fair value.
Remember the can’t miss hot stocks being touted by Wall Street and their CNBC mouthpieces? The IPOs were being rolled out like crazy in 2015 and the stocks would soar to heights not seen since the good old Dotcom bubble. Let’s take a look at those fantastic can’t miss opportunities of a lifetime:
- GoPro – Down 83% since August
- Twitter – Down 65% since April
- Fitbit – Down 63% since August
- LinkedIn – Down 27% since March
- Netflix – Down 20% since December
And of course there are the heavyweights that everyone must own:
- Amazon – Down 17% in last two weeks
- Google – Down 10% in last two weeks
- Facebook – Down 14% since November
And this is just the beginning folks. These heavyweights are overvalued, overbought, and over owned. They will need to fall at least 50% to be fairly valued.
(10 votes)
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Pull it!
It's just illustrates the reason to:
"Do the opposite of what THEY say", whether it's government officials, or their media toadies, 'on-the-take' talking heads, whoever.
If THEY are in a position of power, whether it's control over policy, the flow of information, etc., and say "It's a good idea", you can safely assume it's a bad idea, and will profit by doing the opposite of their recommendations.
RIP Hans Gruber
No, NOE, not again!
(New Obama Economy)
Fuckers going into limp dick mode. Next is the jumping mode.
The Wallstreet cheerleader's Pom-Poms can't even cover for their criminality.
You kidding, right?? I need to WhatsApp, Twitter and Facebook my Wall Street buddies quick!!
This biatch could get so ugly that beer goggles won't even help
One monir quibble: FB is now a real company. It should not be lumped in with the others.
comes to mind the old theory: dollar strong, dow sell off, dollar weak, stocks go up..as those foreign money men play the dollar hedge..did that all go away or is the market reflecting a strong dollar??
Why, becasue it's LTM p/e is 96 while the others are all triple digit? Provide some evidence for your statement pls.
It's a real company because the owner gives away most of his shares to charity. The kind of charity in their kid's name, so little or no tax paid.
Long GoFundYourself.com
The fed clearly told us to GoFuckYourself.
I'm glad that all those trillions the fed printed on my distant future great grandchildren's behalf has gone to good use.
The future is menacing. Snowblind and Sabbath Bloody Sabbath have been running on loop in my head since December. A raw soundtrack for evil days.
No brag, just fact
Ill just leave this right here
http://www.bloomberg.com/news/articles/2016-01-14/for-real-oil-prices-the-crash-is-even-bigger-as-china-fizzles
Texas Intermediate futures, the U.S. benchmark, sank below $30 a barrel on Tuesday for the first time since 2003. Actual barrels of Saudi Arabian crude shipped to Asia are even cheaper, at $26 — the lowest since early 2002 once inflation is factored in and near levels seen before the turn of the millennium.
"It's just a flesh wound".
Black Knight, Monty Python
What part of "NO" don't you fucking idiots understand? NO price discovery means NO!!!
Years and hundreds of trillions in central bank intervention has fucked true price discovery and unleashed MORAL HAZARD on a scale the world has never seen. The fucking "price" could be ZERO just as easily as it could be $1,000 per barrel you stupud fucks!
Don't pretend to know shit about "prices" right now, becuase you don't. Nobody does...
Easy brother you might drop dead of a heart attack... poor guy must be long oil.
Not at all. In fact cheap diesel really helps our margins.
just amzaed by the epic ignorance of people talking about valuations and prices in the absence of price discovery.
But yes,
Jump you fuckers!!!
I have long come to the conclusion that it may be necessary to help them along by "pushing them" rather than waiting for them to jump.
bs... as if zh readers were too stupid to read charts themselves
Joseph Abby Cohen sees 11% upside to the S&P this year...!
Hold on fellas. I don't think we should gloat like this just yet. We could get sucker punched and then have to eat more crow. I say lay low for a bit longer, stay calm and polite, and then dance and celebrate like muslims on a NJ rooftop once The Great Fall of 2016 occurs!
Is collapsing a empty building an alternate price discovery model?
Are you talking in terms os "mark to market" or "mark to FANTASY"?
Big difference fuckers.
Obviously you have never been to Ebay. I saw a $25 Corningware cassarole dish sell for $155.
Price discovery is for rational people in a real maketplace.
That person may relist that dish next week for $250. And get it. Why does everyone assume that things have to make sense?
They don't. It's a human thing.
Edit: I got the big 14 oz. 4 chicken pot pie ramekins for $12. I hated those little Wifey sized pie cups. The secret is the dry vermouth in the roux. Gets your seasonings to pop.
PREPARE FOR LIFTOFF!
Excuse me sir, could you please help me give this a nudge.
Just a bit more and I can get it over the cliff.
It's stupid to use Amazon, Google, and Facebook as examples. Facebook is up 300% in a couple years and your example shows down 14% since December?? I mean who gives a fuck? FB might not be worth what it's trading at but no need for a touchdown dance when it's up 300% over such a short period.
AXP ate my unicorn.
It's very similar to trusting someone who works for the Government.
The network effect will keep Facebook around for quite sometime into the future.
My concern is that problems are appearing in the real economy. You can see this in the way energy, manufacturing and transportation are going down. So it doesn't seem to be just an irrational exuberance issue.
Yeah.
I'm thinking maybe Govt. giving away trillions of dollars to keep banks from realizing losses might start affecting Main St. at some point too.
Maybe if we can get them to gamble harder, everything will work out fine. I certainly hope so because my yet unborn great grandchildren are on the hook for the bill.
In theory, anyway. Maybe by then they'll have some formal indenture papers to sign.
45 years and a day til freedom.
It's funny how valuations matter in a declining market, because people know for the overvalued shit out there the Emperor Wears No Clothes.
How long can the game continue with soverign debt at these levels?
http://thedailycoin.org/?p=58062