I am often harangued by monsters who are permanently short the NASDAQ and always losing money with comments such as “THE BIG CRASH IS COMING” or “YOU’RE SO DUMB BRO, THE TOP IS IN.” Shut the fuck up with your ideologies. I have strong opinions too and want things a certain way; but I cannot manifest these things into existence, you fucking morons.
We have a ripper on our hands and markets like the action, no matter what you think.
We have the Fed coming out next week with cheap money deals, which is going to lead to MULTIPLE EXPANSION, depending on how cheap the money will get.
What does that mean?
Capital intensive companies trade at multiples based on their FCF. With rates coming down and the cost to borrow cheaper, the valuations by which those corporations are valued go up. This is why you’re seeing shares of $CLX and $PG jimmy higher. This has more to do with access to cheap capital than the specter of doom and flight to risk averse stocks. Before making decisions, you should become smart.
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