Call me chicken little, go ahead do it. This market makes zero sense. It is built on an enormous amount of debt and the whole idea of “stonks only go up” is just a modernized version of Tulipomania.
Five stocks carry virtually the entire market on their back right now. Apple, Microsoft, Amazon, Nvidia, and Alphabet. With Berkshire (Buffets clinging onto cash right now, that should tell you something), Meta and Tesla carrying a good chunk of the load too. Meanwhile the Russell 2000 corpse is in the Wendys dumpster. . NVDA hit a 52W high this morning and is getting close to hitting a new ATH. In October it was trading at 112.27, today 315.80. This is over 150x earnings! Not even in the same universe as anything that can be considered a value stock. If NVDA earnings Quintupled (multiplied by 5 times for the smooth brains) it would still trade at a 30 P/E! But AI is the future, right?
Everyone buying into this market is drinking the same kool-aid and the basis for the bullishness is that the fed will bring interest rates back down and the market is forward looking. Yes that will happen, after this dead cat bounce is over and we enter a recession. It might not be a Burry-worthy crash like 2008 but if you buy into this market thinking its going to go up you’ll be waiting a loooong time. Sell and buy back in when stocks are cheaper… Otherwise; hold those bags tight! Gonna be a bumpy ride.