Oh no, all of the bubble basket stocks are sinking again. I think it’s abundantly clear to me, as it was for the banks from 2007-2009 and the dot coms from 1997-2003, that whatever sell off afflicts this market it is going to be led lower by “the bubble stocks.” You didn’t think the internet sector first started going down in 2000 did you? Please. Those bastard stocks knifed lower from 1997, even before that–as AOL and Compuware jockeyed for dominance.
Whenever an industry is innovative and/or widely owned, like banks in 2007, the valleys are onerous to investors. They make you feel terrible when they’re sinking, joyous when they’re rising to new heights. Most people can’t stomach them and sell out at the bottom, after buying at the top. It all ends badly, as you know. However, how long will this movie last? That’s another question.
Today is a classic reverse from the top and punish everyone who has arms and legs sort of day, especially those buying the anointed sectors. Either we recover our losses and the market continues to streak higher. Or, the NASDAQ drops by a percent or two and you regret ever buying into the market.
Get your popcorn ready.
NOTE: In case you didn’t know, Janet Yellen “the meddler” took off her Fed hat and wore a stock analyst hat this morning, taking aim at social media and biotech stocks.
“…Valuation metrics in some sectors do appear substantially stretched—particularly those for smaller firms in the social media and biotechnology industries, despite a notable downturn in equity prices for such firms early in the year.”
Unreal.
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Outside of the degenerates on StockTwits and Twitter, I wouldn’t think that the bubble stocks are really widely owned. Pretty sure mom and pop don’t even know the difference between a stinkeye and fireeye.
You don’t think YELP, TWTR, FB and LNKD are widely owned?
Every Large Cap Growth Manager owns FB
FB is near all time highs
I got some Jiffy Pop on the stove heating up.
I really wish Grandma Yellen would have stayed in her Posturepedic this morning. Account took a beating.
And $RUBI is actin a fool. It doesn’t have me rollin on dubs, sipping bubbly in the clubs or any of that other shit.
being patient
So the Fed is starting to chime in on stock valuations huh?
How are you stomaching this price movement in $RUBI? Are you planning to continue to average down in the position or cut losses at these levels?
Grandma looks absolutely terrible. Stroke watch no doubt. Has she ever heard of sunlight or exercise?
For her to actually utter those words is confirmation that the fed is monitoring and controlling the stock market.
+1
+1
1 + 1 makes 2!
Bad day to be fully invested in Yelp…
don’t you have tight stop losses? I got stopped out.
How would you like the “meddler” for a mother-in-law. Holy shit.
That would mean she would’ve had to spawn. Can you imagine what her daughter might look like??! YIKES! Talk about playing in the short end of the gene pool.
*shallow
Hey given how large the equity porfolio at the fed and other central banks is they are right to be worried about the retarded valuations they bought at. Saying it out loud may not be the wisest.
Dammit, Janet.
Testifies to prove that she’s no joker,
There’s three ways that valuations grow,
That’s good, bad, or mediocre,
Oh J-A-N-E-T, you vex us so…
So let’s go to go see the man who began it
Janet!
When we saw his $helicopter and panicked
Janet!
Made me think the dollar he’d shit-can it
Janet!
Now I’ve one thing to say, and that’s
Dammit Janet, I don’t really love you!
😉
-fer the 8th street playhouse crowd. Arrr!
Humphrey Hawkins == the Floorshow.
Definitely a rocky ride and a horror show for LO/RAI speculators today, for reasons that have nothing to do with the Fed. Not my day… feh. all that fuss for 3.4% in pizza money.
Yellen=scapegoat……she will bleeeeed.