18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
20,784 Blog Posts

High Growth Stocks Shattered to Pieces

SAAS-FAGS have been annihilated and removed from the board of play.

SAAS Basket

Also, my Bubble Basket in Exodus — torn to pieces

Not much analysis needed here — this is merely an acceleration of what has been burning slowly. Ever since the We Work debacle, high valuation stocks have been getting hammered. Now if this is anything like 2014, the last time SAAS stocks were ripped, you will see a rotation into other areas of growth — but it won’t ruin the market. I have a hard time believing we’re toast here. As a matter of fact, this is probably a good time to buy.

You know how the old saying goes: “Markets do not bottom on Fridays.” Ergo, lower we go…for now.

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  1. og

    Many software stocks looks like they had recoved only to get the rug pulled on Wed.

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  2. numbersgame

    dot.com in 1999: “It’s a new paradigm. PE doesn’t matter because growth is so high.”
    SAAS in 2018: “It’s a new paradigm. PE doesn’t matter because growth is so high.”

    AMZN reporting next week. It is the combination of a low-margin retailer with a high PE cloud stock. MSFT is repoting next week as well, witha PE near its historical highs. If SAAS isn’t expected to be doing well, how well can cloud be doing? I guess we’ll see next week. Of course, the stakes are obviously much higher, as each of thes stocks are larger that the whole SAAS sector.

    I noted VIX was abnormally low at 13.6 on Tuesday.. VIX is up 6% since then even as the market has moved higher. Maybe that was a short-term bottom for vloatility.

    I also noted that VIX option and TVIX were expensive (esle I would have bought some). If you had invested in the “2x VIX” ETN, that 6% bump up would have translated to a 3% loss instead of the 12% gain you may have expected. Always check out the monthly (not weekly) VIX Futures quotes before investing in TVIX, just so you know how fast it is decaying.

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  3. ferd

    Don’t feel too badly s.k., like you, the smartest woman to have ever existed is also a conspiracy nut:

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