Let’s be honest and recognize the presence of a toxic mania in today’s markets, and that it’s all just speculation.

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by xmrptbx

You can see it all over reddit, twitter, youtube and any other social media.

There are people that have been trading for a few months that don’t even know how to read an income statement or what is market cap, that suddenly sell themselves as experts and do what they believe to be sophisticated securities and market analysis, when in reality they are just glancing at a few lines on a chart or some text they don’t understand and using it to confirm their bias. They live in this populist made-up reality where the world owes them something because they are oppressed and they are convinced that they predicted a global financial collapse when in reality they are just being played by market makers and heavily indebted companies that are trying to save themselves raising capital by issuing new shares.

Then there’s the crypto blokes, that know blockchain so well they probably never actually used it. They can’t even recognize that all these coins including the big ones have almost zero use cases. You think these tokens are really going to become money, even with scalability problems that have remained unsolved for decades and a market that is easily manipulated by falsely backed stablecoins issuers and a few exchanges? Do you actually believe these charlatans when no serious economist has ever said anything good about it?

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Even the guys and gals that are supposed to teach the average user personal finance just follow this mantra of buying and holding NASDAQ ETFs like they’re the holy grail of investing, even if we are almost at an historic all time high in terms of valuations, even if everybody has forgotten that stocks are risky: I would like to see these people deal with crashes like 2000, 2009 or even with something similar to Japan. But of course, intrinsic value doesn’t matter, right? Trying to value a stock like a bond is for boomers, we’ll have endless growth. Let’s price in the next centuries of earnings into every EV company.

I honestly have to think that there is a good part of people that don’t actually believe the narrative and just goes along with it to speculate and sell his bags to a more naive investor. That’s why everyone, -and I say EVERYONE including institutions– scouts this website everyday just to find out what the next meme is going to be. “What’s the next worthless thing retail’s going to pump this week? Just so I can get quickly in and out before it collapses” … since it’s backed by zero fundamentals. It’s a toxic and disgusting and opportunistic behaviour and it’s a clear symptom of the presence of speculative fever in the markets. I’m not saying everything’s necessarily a bubble, because prices could keep going up for years. But you have to recognize that animal spirits are through the roof. I can condone it, but at least I acknowledge it.

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Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.

 

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