Are the markets Overvalued, Inflated and Pumped?

voyager23

jr. member

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Quote from: Kittygalore on January 27, 2021, 10:25:10 AM

Quote from: masterzino on January 27, 2021, 09:47:43 AM

Well, I think that both crypto and stock markets are overvalued. Let's look at the most hyped example - Tesla, which gained more than 900% in a year. No doubts that Tesla has potential, technology, etc., but the P/E ratio of 1,730.00 is crazy. It's the same with most of the coins.

Tesla won the beauty contest, people loved the company, their Earth friendly product and the CEO. I think the hype only lives on the outside, news spreading FUDs and hypes alike both in crypto market and stock market, they do not directly affect the prices but they can be a good trump card if you are on its good light. I don't believe that they are overvalued because if you sift through all the noises and see it at rational standpoint then you will understand what its value is. When it comes to being inflated, I think stock market is more on it because they have more people involved. Pumped might not be a bad thing, it comes and goes anyway, for stock market though it is a bad thing because an economy might collapse because of it.

Talking about economy, the stock market and economy could not be any further apart... unemployment all time low, small - medium sized business closing by the 1000s daily, yet SP500 up to 800% in some cases.

Is this all part of the "new normal" rubbish.. You will own nothing and you will be happy.. Something big is going to happen. Maybe BTC will be the only currency in a cashless society???

Kittygalore

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Quote from: masterzino on January 27, 2021, 09:47:43 AM

Well, I think that both crypto and stock markets are overvalued. Let's look at the most hyped example - Tesla, which gained more than 900% in a year. No doubts that Tesla has potential, technology, etc., but the P/E ratio of 1,730.00 is crazy. It's the same with most of the coins.

Tesla won the beauty contest, people loved the company, their Earth friendly product and the CEO. I think the hype only lives on the outside, news spreading FUDs and hypes alike both in crypto market and stock market, they do not directly affect the prices but they can be a good trump card if you are on its good light. I don't believe that they are overvalued because if you sift through all the noises and see it at rational standpoint then you will understand what its value is. When it comes to being inflated, I think stock market is more on it because they have more people involved. Pumped might not be a bad thing, it comes and goes anyway, for stock market though it is a bad thing because an economy might collapse because of it.

voyager23

jr. member

Activity: 70

Merit: 1

Quote from: masterzino on January 27, 2021, 09:47:43 AM

Well, I think that both crypto and stock markets are overvalued. Let's look at the most hyped example - Tesla, which gained more than 900% in a year. No doubts that Tesla has potential, technology, etc., but the P/E ratio of 1,730.00 is crazy. It's the same with most of the coins.

Yes for sure, regarding Tesla, it helps to look at its closest competitors and to see how far they have flew also.. NIO for example has followed the same pattern as Tesla, growing some 500%... XPENG maybe 300%...

Every stock I have looked at though have all had the same meteoric rise in no time, add to that the P/E ratio being way off as well as the Buffett Indicator score being an all time high... indicators of a crash... I am definitely no expert, far from it, but sometimes the simplest answer is usualy true (occam's razor).

I am holding back on investing for now.

masterzino

hero member

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Well, I think that both crypto and stock markets are overvalued. Let's look at the most hyped example - Tesla, which gained more than 900% in a year. No doubts that Tesla has potential, technology, etc., but the P/E ratio of 1,730.00 is crazy. It's the same with most of the coins.

bekti3

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Activity: 1078

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There are two perspectives here, which respond to market conditions, be it bitcoin or the stock market, have left us with doubt. The reason is that 2021 is the starting point for the return of the economy which was slumped by the pandemic, but on the other hand some billionaires leave their assets and take the maximum profit. and eventually the market will be quiet. whether with technological advances and the economy starting to return to make investors return to their original activities or with new activities.
So during a pandemic, bitcoin and the stock market are just the way out to keep their money from inflation?

This is totally unfair for those of us who are in digital assets. Angry

20kevin20

legendary

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Well, it's quite weird that billionaires sold their stocks and left their company's chairs in the past few years while Bitcoin institutional investments are going up. One thing I highly suspect is that they're selling what they have so that when the huge crash comes, Bitcoin remains as one of their safest and best investments to still hold onto.

In my opinion, the next bubble burst will make Bitcoin fly in the sky. Considering the inflation, all that money pumped into the economy through checks and so on, it has to crash wildly soon.

voyager23

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Activity: 70

Merit: 1

This is referring to the traditional stock markets as well as crypto (though I know the two are not connected, not directly anyway).

Looking on all the top US stocks, they have all added between 300% and 900% in the space of 2 months, it's drastic! Even Blackberry rose something like 200% overnight only 5 days ago?!

What is going on?

I am no expert, but try to study history and financial markets to help me along my way.

The crash in 2020 was a little shake up, we all dusted ourselves off and got on with it. Is a bigger crash imminent in 2021? I am holding back from buying or investing till I have a better idea. And as for the price of crypto and of course BTC, that will be effected if a crash does come.

Warren Buffet has sold the majority of his consumer goods stocks, airline stocks and anything that would not fare well in times of serious trouble. He has bought mainly into energy, commodities and large food holdings like supermarkets and food manufacturing. All things that would fare well in times of serious recession.

Would love to hear your thoughts.

Vid I watched on Buffet selling all of his stock.
https://www.youtube.com/watch?v=x25kzo9XldA

Topic: Are the markets Overvalued, Inflated and Pumped? (Read 98 times)