Common misconception.
I cannot buy XYX because ‘it’s too expensive’, so I’ll buy XYS and possibly find the next XYZ.
WRONG.
There is only one Apple, one Amazon and no one really benefited from their success. The myth and the dream of tailwind success off of another giant winner has been discredited a long time ago. Companies that are crushing it usually crush their suppliers too — because they apply leverage. If you like ROKU, buy ROKU, no matter the valuation.
Are you still employed? Do you earn money? Then buy a little ROKU now, a little later, and dollar cost average into the stock over a course of a year. The idea that you should have anything but the best stocks in your portfolios is foolish and a fast track way towards and into the poorhouse.
I sold a handful of stocks today, 1-3% gains and replaced them with another handful of stocks ripping at new highs. For 2020, I intend to start a ‘best ideas’ portfolio in Exodus again, something I eschewed in recent years but now feel the urge to express my artistic license again.
In short, buy the best stocks, irrespective of valuation, and tell your in laws to buy the second rate Barnes and Nobles of the world.
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Buy high.
Sell Higher.
Skip the buy low sell high part.
Buy high, don’t sell is what i’m seeing.
Merry Christmas!
I’m sure some of you missed me, if not just to say “I told you so.” Combination of being busy and not seeing opportunities. Well, of course, I see plenty of shorting opportunities, but the market is lit up on nog in a big way with no signs of weakness.
Valuation means nothing now. TSLA at ATH based on… well, nothing really, but why should that matter, right? NFLX also up huge these last two weeks (but may be running out of steam). The third horseman of the anti-valuation apocalypse, AMZN, up 6% in just the last two days based on the fact that their sales are highr than last years. On-line sales up? What a shock! “Alexa, do higher revenues mean that profits are also higher?”
Even AAPL, up 50% in the last 4 months. Might as well get to to $300, right? That’s a pretty number.
And of course, I’m stuck holding bonds, watching as the massive rally has sent investors out of bonds causing a crash in TLT from $121 all the way down to $137.
Say what you want, but the emperor is still naked. Earnings in January should be interesting…
Merry Christmas!
I’m sure some of you missed me, if not just to say “I told you so.” Combination of being busy and not seeing opportunities. Well, of course, I see plenty of shorting opportunities, but the market is lit up on nog in a big way with no signs of weakness.
Valuation means nothing now. TSLA at ATH based on… well, nothing really, but why should that matter, right? NFLX also up huge these last two weeks (but may be running out of steam). The third horseman of the anti-valuation apocalypse, AMZN, up 6% in just the last two days based on the fact that their sales are highr than last years. On-line sales up? What a shock! “Alexa, do higher revenues mean that profits are also higher?”
Even AAPL, up 50% in the last 4 months. Might as well get to to $300, right? That’s a pretty number.
And of course, I’m stuck holding bonds, watching as the massive rally has sent investors out of bonds causing a crash in TLT from $121 all the way down to $137.
Say what you want, but the emperor is still naked. Earnings in January should be fun with these boosted valuation levels.