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Typical PE ratio for any stock is on average around 17. Just before the financial crisis the market average was around 25. Before the dotcom bust it was 25-30.

Typical PE ratio for any stock is on average around 17. Just before the financial crisis the market average was around 25. Before the dotcom bust it was 25-30. TSLA is at 1,671 LOL!!! The market right now is around 40. Obviously technically we are in a recession but the stock market is going up. So where's the crash? What are your typical measures that we have a massive market crash coming? If people believe this they will move their money to something that shouldnt crash or at least are isolated. Amazon is sky high as well. Bitcoin is at $40,000. Ethereum is way up as well. Gold is way up. Bond market is way down(implying people are buying bonds in droves) Germany, Belgium, Netherlands, France, Switzerland are all negative interest rates. The thing about the summer and covid lockdowns. People got out to spend money in the summer due to lockdown being over. We are now back to lockdown. Which means earnings calls are going to be bad. Late spring we will be seeing the crash. People are moving their money now to safer places. Tesla, Amazon, Gold, Bitcoin, Bonds is how they are doing it. When the crash comes, it will likely not be Tesla.

dmode 6y ago
There will be no crash as we have demonstrated that you can always print money
- sleepysysadmin 6y ago
  >There will be no crash as we have demonstrated that you can always print money One of the best metrics to see this: https://tradingeconomics.com/united-states/central-bank-balance-sheet https://tradingeconomics.com/united-states/central-bank-bala... Basically in a fiat currency the very last place for debt to go. You can clearly see when the financial crisis happened and how the USA never really recovered from it. Then you can see when the covid recession hit. https://tradingeconomics.com/venezuela/central-bank-balance-sheet https://tradingeconomics.com/venezuela/central-bank-balance-... There's only 2 ways to see where this goes. It means bankruptcy OR major inflation. Biden government will decide which they choose.
marvin 6y ago
You can get an arbitrarily high P/E ratio if you're running a growth company that aggressively reinvests. It's a meaningless metric in this context. Look at gross margin and price to revenue instead. Tesla is still richly priced by these, but within the realm of plausibility if you make the right assumptions.

dmode 6y ago

There will be no crash as we have demonstrated that you can always print money

sleepysysadmin 6y ago
>There will be no crash as we have demonstrated that you can always print money One of the best metrics to see this: https://tradingeconomics.com/united-states/central-bank-balance-sheet https://tradingeconomics.com/united-states/central-bank-bala... Basically in a fiat currency the very last place for debt to go. You can clearly see when the financial crisis happened and how the USA never really recovered from it. Then you can see when the covid recession hit. https://tradingeconomics.com/venezuela/central-bank-balance-sheet https://tradingeconomics.com/venezuela/central-bank-balance-... There's only 2 ways to see where this goes. It means bankruptcy OR major inflation. Biden government will decide which they choose.

marvin 6y ago

You can get an arbitrarily high P/E ratio if you're running a growth company that aggressively reinvests. It's a meaningless metric in this context. Look at gross margin and price to revenue instead. Tesla is still richly priced by these, but within the realm of plausibility if you make the right assumptions.