Black Monday

[Rawz]

Meta has its own issues vs tiktok for now.. i am not entirely sure wall st understand that tiktok will one day go the way of the dodo and FB will be around forever... FB it is a key to the internet and has groups which keep you glued to their platform

[alokdhir]

cause the other big news this week is the RBA stopping QE and im sure to raise rates soon due to inflation

Reserve Bank to wrap up $350 billion stimulus program this month as economy beats forecasts

https://www.abc.net.au/news/2022-02-...ates/100795814

and last night

Bank of England hikes rates in first back-to-back rise since 2004


https://www.cnbc.com/2022/02/03/bank...ince-2004.html


The euro jumped against the dollar on Thursday after comments from ECB president Christine Lagarde fuelled expectations of faster monetary policy tightening, although the central bank confirmed its guidance for interest rates and its bond purchase programme.
https://www.reuters.com/markets/euro...gs-2022-02-03/

a flip from dec but confirming the direction they are heading
all in all confirming a large part of the world is tightening now or soon and stocks will need to adjust to a rising rate environment and inflation

RBA also said in commentary that. " No need to raise rates quickly " ....But surely they will rise ...but its not first time markets seeing rates cycle turning ...still markets do well in the long run . Yes for traders better opportunity can come ...but surely nothing big for investors .

Also IMHO ...this rate cycle will be very shallow just on the basis of huge debt levels of all Govts ...Mainly the short term difficulties of production and supply chain and people sentiment is driving inflation ...we dont have any capacity constraints ...just staff and supply issues .

Oil is big speculation going on ...from negative prices at start of pandemic to $ 100 is just speculation and supply issues driven sentiments .

Do u really think world is using more oil today then in 2019 ?

[bull....]

Do u know the P/E these big names trade on ...TESLA is 300 ...mind boggling 300 P/E ...and its not a tech company but a manufacturing one ...but people are paying high prices to own future Apple or so . They are not looking to make money in next 2 years but investing for next 30 years ...many traders dont have that perspective of super long term investors like pension funds etc ...they dont care if next year TESLA is $ 400 ...they just know in next 10 years it maybe $ 4000 .

Traders vs Investors is different perspective of investments ..." Time in the market is more important then Timing the market "

Our FPH / MFT are also long term investment grade stocks ...may look pricey at P/E of 30 + to traders but not to investors .

buying FPH/MFT etc in simple terms means it take 30 yrs to get your money back from earnings at a pe of 30 hope nothing goes wrong in those 30 yrs.

ill stick to the proven data that says most things revert to the mean at some stage

[alokdhir]

buying FPH/MFT etc in simple terms means it take 30 yrs to get your money back from earnings at a pe of 30 hope nothing goes wrong in those 30 yrs.

ill stick to the proven data that says most things revert to the mean at some stage

Then as per u the life span of TESLA investors is much longer then humans ...it will take 300 years to get your money back as per your logic ...lol

[bull....]

Then as per u the life span of TESLA investors is much longer then humans ...it will take 300 years to get your money back as per your logic ...lol

thats why i said in simple terms , for a start up as an example high pe can easliy translate into low pe in the future due to growth for the odd company but for most its just overvaluation at the moment. for old and big companies it is much harder to support such high growth rates yr after yr

[JohnnyTheHorse]

Interesting correlations between the NZX and the SP500, with the overall conclusion that the NZX is showing significant relative weakness to the SP500.

NZX dropped 10% from peak, SP500 12%. Sounds like the NZX is stronger, however you need to consider that the NZX was down in 2021, whereas SP500 was up 20%. What's really notable to me though is the retracement from the lows. The NZX has retraced 38% (bear flag territory), whereas the SP500 has retraced 62%. In my opinion the SP500 is most likely to form an equilibrium in this range it is setting for many weeks, until we see a break either way (my bet would be downwards, but I'll be playing both directions).

[Balance]

One pays up for quality which delivers year after year.

It’s that simple.

[alokdhir]

One pays up for quality which delivers year after year.

It’s that simple.

Investors understand that not traders ...as investors dont want the trouble of always on guard ...invest in good companies and forget ...not always watching screens and news feeds ...

[Balance]

Investors understand that not traders ...as investors dont want the trouble of always on guard ...invest in good companies and forget ...not always watching screens and news feeds ...

It is good to tuck a few high growth stocks into one’s portfolio but must never be to the extent of losing sleep over them. That’s not investing but gambling then.

[alokdhir]

It is good to tuck a few high growth stocks into one’s portfolio but must never be to the extent of losing sleep over them. That’s not investing but gambling then.

Investors never gamble ...they invest for long term ...they have 5-10 years view ...Traders gamble with 1-90 days view ...