This market is manipulated to the point of being ludicrous.
When individual stocks are still being bought at P/Es well over 20 and RSIs approaching 80, it is no longer a market in which participants can believe.
Let's see...
Ongoing pandemic that is crippling both supply and demand globally? ✅
Nearly 50 million unemployed over the past 10 weeks? ✅
The worst, most widespread and prolonged civil unrest since the 1960s? ✅
Increasing tensions between the US and China? ✅
Stocks reaching unprecedented valuations? ✅
The contrast between the economy and the stock market has never been this stark before. Despite the worst economy in 100 years, stocks have soared over the past 2.5 months. Tesla is up 400% over the past year and has more than doubled in value YTD. Amazon has a P/E over 100. The Nasdaq is on the cusp on reaching new ATHs.
The Fed was desperate to prevent the coronavirus from popping the everything bubble, and their overreaction has now reinflated that bubble to new heights. This is NOT going to end well.
When individual stocks are still being bought at P/Es well over 20 and RSIs approaching 80, it is no longer a market in which participants can believe.
Let's see...
Ongoing pandemic that is crippling both supply and demand globally? ✅
Nearly 50 million unemployed over the past 10 weeks? ✅
The worst, most widespread and prolonged civil unrest since the 1960s? ✅
Increasing tensions between the US and China? ✅
Stocks reaching unprecedented valuations? ✅
The contrast between the economy and the stock market has never been this stark before. Despite the worst economy in 100 years, stocks have soared over the past 2.5 months. Tesla is up 400% over the past year and has more than doubled in value YTD. Amazon has a P/E over 100. The Nasdaq is on the cusp on reaching new ATHs.
The Fed was desperate to prevent the coronavirus from popping the everything bubble, and their overreaction has now reinflated that bubble to new heights. This is NOT going to end well.