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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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To: ajtj99 who wrote (42991)11/12/2021 11:47:08 AM
From: Lee Lichterman III1 Recommendation

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catou1

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There have always been companies with high growth, etc. but right now, there are a more than average number of companies losing money or just barely puttering along and racking up debt.
During the swoon down back in February/March 2020, everyone was worried about debt but that all went out the window and now debt is even worse but nobody cares.
We've talked before about how the indexes misrepresent PE ratios by not counting negative earnings and only the ones with positive earnings.
Those companies you are talking about with high growth are already valued to more than factor that growth in. NVDA, AMD etc are priced for perfection and like they will continue to grow at this pace for the next decade and more. Anyone that has been in the market for a while knows growth doesn't stay high like early on that long. Even MSFT, AMZN slowed for a while until they got into something new like the cloud and that was after a long pause. Note how they went nowhere for years and they are the cream of the crop. Hundreds of others just went away or fell far and didn't recover.
Like I said, we can continue up for another year or so but it's all going to come down to the long term line eventually. I am watching the cycle turn I have coming after new years though just in case.
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