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Here's my comment I wrote earlier in my submission that was removed because it was a "dupe" (and I seem to have been throttled as a result of this transgression
by f430 6y ago
Here's my comment I wrote earlier in my submission that was removed because it was a "dupe" (and I seem to have been throttled as a result of this transgression):
I'm a bit of a centrist leaning to WSB:
- I will agree the fundamentals are off. AMC, BB, GS compared to its industry competitors market cap and valuation doesn't make sense.
- Counter to the above argument, it shows the cracks in the system: Many stocks are simply valued based on votes that traditionally has been in the favor of large institutional investors who are also guilty of market manipulation and closer, faster access to new information that the retail investors do not have.
Overall, I am very worried that we are on the final stretch of the equity bubble that started as a result of the Feds printing money, buying up corporate debt, violating the US constitution. We are witnessing a departure from fundamental valuation and straight into a manic stage.
- I disagree that retail investors have an edge in information rather that existing fundamental analysts employed by large firms never had an edge at all and simply a mouthpiece for whatever price is desired by a select group of institutional hedge funds.
TLDR: I am pleased the little guys are winning but also very worried that we are on the final manic phase of a classic equity bubble we've witnessed two decades ago.
edit: HN is throttling my comments after my CNBC video was removed for being a duplicate so to answer:
"Why is it different now we've been in a bubble for the past 5 years"
Take a look at the M3 supply
https://fred.stlouisfed.org/series/MABMM301USM189S https://fred.stlouisfed.org/series/MABMM301USM189S
do you see that vertical line right at the beginning of 2020?
that's what is different now. We are now in a bubble withi in a bubble.
- simantel 6y agoPeople have been saying the everything bubble is about to pop for 5+ years. Why is now different?
- pashamur 6y agoThis is just the latest version - there was the crypto bubble in 2017, then the MJ bubble in 2018 (and XIV volatility collapse), now this. I think crypto proved to us that you don't need any sort of fundamentals - price action beats all (and defines the narrative) in the short term. We've also become a meme-based and tweet-based economy (and Donald Trump / the pandemic surely help speed that along)