The FTSE

Gaudion M said:
Tesla is the poster boy for overvalued.

Every box is a tick:

Price to earnings of the charts: tick
Massive overprive in comparison to peers: tick
Popular with alt right crypto types: tick
Celebrity CEO with questionable competence: tick
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Yep. Even after recent declines, it could still be 10 times overvalued. But unlike the others, it had a $1T+ market cap, which means that a crash in the stock could cause contagion and capitulation in the wider market. Not that this would be a bad thing for people with time on their side, but it might be pretty devastating for retirees.

It’s an important lesson to younger investors (and some extremely naive older ones) that growth/innovation/disruption at any value is just gambling on short-term market sentiment. Speculative stocks should only ever be at most a tiny portion of your portfolio.
 
Carnage on Wall Street today. The FTSE could have a torrid day tomorrow. The mega tech stocks doing particularly badly with Tesla and Amazon with some of the biggest drops. Bezos and Musk will be worth a few billion less tonight than they were this morning. Both are over 40% down from their peaks last year.
 
west didsblue said:
Carnage on Wall Street today. The FTSE could have a torrid day tomorrow. The mega tech stocks doing particularly badly with Tesla and Amazon with some of the biggest drops. Bezos and Musk will be worth a few billion less tonight than they were this morning. Both are over 40% down from their peaks last year.
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Just when I thought things could hardly get any worse. What’s driving the latest?
 
journolud said:
Just when I thought things could hardly get any worse. What’s driving the latest?
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The Fed is going to kill the market to destroy demand in a futile attempt to get inflation under control.Head for the hills.
 
journolud said:
Just when I thought things could hardly get any worse. What’s driving the latest?
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Target, on the heels of Walmart.

When the hiding places get schwacked, look out below!

In a consumer-driven economy, where people are talking about inflation having peaked, watching Target not make numbers and give poor guidance made a “6% up in a week” market QUICKLY take most of that back, while also taking out the “safe spaces.”

If the wealth effect amongst consumers turns, the economy contracts. If inflation remains high due to supply issues (greater than demand destruction), then there is no knowing how low is low this time.

Target down 25+% looks like the apocalypse to the safe money crowd.
 
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CPPSC said:
Looks like Powell has been given remit to do a Volker. This could get very nasty.
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Not quite Volker, but he needs to see corporate earnings GROWTH reined in, which is starting to happen, so he isn’t forced to overshoot (too far).

I’d think more MAX 3.5-4% than 17%!!!

We will be at 1.75-2% by the end of summer, so we will have another quarter of earnings to digest by then.

My personal opinion is that they telegraph a drive to 2.5% in 50bp increments by year end and then hold.

Even if supply chain issues persist, demand destruction needs time to bring some balance.

There are a lot of people tied to low, but adjustable, rates that will start to feel the pain and the consumer should flow. That demand destruction, coupled with an easing supply chain issues, SHOULD induce inflation REDUCTIONS.

Persistently higher oil prices will hurt that somewhat, given America’s penchant for 20mpg trucks & SUVs, but the Fed has to stop chasing its tail by ramping up on trailing edge data points.

Move, hold & consolidate, wait for reaction, act further only if absolutely necessary.
 
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