by LuxGang
I’m hoping to generate some discussion on if we’re in a bubble, and what kind of data we can look at to help us reach a consensus.
From Investopedia:
“An asset bubble occurs when the price of a financial asset or commodity rises to levels that are well above either historical norms, the asset’s intrinsic value, or both.”
Now, the P/E ratio of SPY is currently around 27 according to WSJ here. That’s extremely rich, but it’s not entirely accurate. Earnings reports are backward looking, so even before we have Q2 reports showing the full impact of COVID, the market is arguably overvalued.
I looked around today and saw something I’ve never seen in my nearly 10 years in the market (I know I’ve still got lots to learn). Hertz, a company on the verge of bankruptcy, went up over 100% today.
ZM and NKLA are two more examples of stocks that have P/E’s in the thousands, and from the trading activity, it looks like a game of greater fool to me.
So is this what a stock market bubble looks like?
- A Horrifying Drought Is Causing Widespread Crop Failures Throughout The United States And Europe
- China’s Warning ENTIRE Economy Will Collapse In 34 Days
- Ron Paul: “With each passing day, the Biden Administration drifts further & further from reality… The painful economic realities of government spending and Fed inflation are staring every American in the face.”
- CDC is quietly deleting misleading information from their website. The following statement was removed from their website between July 16th and July 22nd
- China ending paper trading in Precious Metals On MONDAY, could be HUGE
- An EU Satellite captures a terrifying picture of Western Europe, almost looks like the Sahara
- A man apprehends a thief who sucker punched an elderly customer and stole his wallet and phone.
- Tom Fitton: “I’ve reviewed the warrant material released in response to Judicial Watch court request. It is all a scam.”
- Disturbing Proof They’re Quietly Deleting the Internet
- People Are Going To Go Absolutely Insane When Food Prices Double Or Triple From Current Levels
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