It has become quite clear that the growth stock bubble witnessed over the last 12-18 months, with an orgy of speculation has now popped and results are and might continue to be extremely painful.
$PLTR $FSLY $TDOC $PINS
$PLTR $FSLY $TDOC $PINS
$SHOP $SQ $MELI $SE
$NFLX $BABA $PYPL $ZM
$SMLR $NVCR $U $HUBS
$WIX $FUTU $BILI $RDFN
$TOST $PTON $AFRM $LMND
$DOCU $PATH $RSKD $NIO
$FVRR $HOOD $COIN $CPNG
$ROKU $STNE $BIDU $YNDX
$UPST $CELH $EXAS $TWLO
So, what's the summary?
• justification of low-interest rates did not save the speculators in growth stocks
• buying any asset at ridiculously high valuations rarely works (if ever)
• following social media gurus into the same stock is bound to have unintended consequences
• justification of low-interest rates did not save the speculators in growth stocks
• buying any asset at ridiculously high valuations rarely works (if ever)
• following social media gurus into the same stock is bound to have unintended consequences
• since we are all wrong, the only way to protect your capital is to ensure ample margin of safety
• when you're buying growth at any price, you're likely to see your portfolio drop meaningfully in price
• tops occur when the popularity in stocks & sectors reach a frenzy
• when you're buying growth at any price, you're likely to see your portfolio drop meaningfully in price
• tops occur when the popularity in stocks & sectors reach a frenzy
If you thought there is a new paradigm shift, a new economy, and that you have discovered it — and will profit from it — before others was clearly an illusion of invulnerability & overconfidence (optimism bias on steroids).
There is nothing new under the sun, just another cycle.
There is nothing new under the sun, just another cycle.
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