Boiler Room: The Official Stock Market Discussion

[Mirin4rmfar]

are we sure LCID is the move I mean if it’s priced the same as Ford for example why wouldn’t we go with Ford.

I am also in ford already. Things will eventually bounce back i think.

 

[lib123]

I have to do the math. I wouldn’t hold any options but I have no issue buying commons a bit here and there. I really think it will all work out. I’m investing the same amount I’ve been doing. Just getting more shares. I even added a new position.

That's a really dangerous game right now. Stocks are still very overvalued on a historical basis. Especially with the Fed pulling back and $900B in margin loans outstanding putting more downward selling pressure on stocks.

 

[NatiboyB]

I am also in ford already. Things will eventually bounce back i think.

I’m thinking if things get close to actual fundamental valuation it’s no way LCID should be worth more than Ford. i see that you are already in Ford I’m just moreso using this as an example. What I’m trying to do is figure out is having my portfolio full of stocks with good fundamental valuations. I recall at one time I was heavy on ARK because it was growing but once that growth period slowed I started to respect that most of their companies were tickers that were years from profitability if ever.

 

[NatiboyB]

That's a really dangerous game right now. Stocks are still very overvalued on a historical basis. Especially with the Fed pulling back and $900B in margin loans outstanding putting more downward selling pressure on stocks.

i mean look at it like this. If you believe that Sofi is undervalued at $13 and fairly valued at $15 why wouldn’t you start buying in. It’s not like you are purchasing the whole position you are grabbing a
Few shares here and there over time.

eventually the market will recover and improve. Even if you believe the market will be down until 2025 it will eventually begin to improve.

It’s definitely dangerous but I believe in the value of time in market

 

[lib123]

i mean look at it like this. If you believe that Sofi is undervalued at $13 and fairly valued at $15 why wouldn’t you start buying in. It’s not like you are purchasing the whole position you are grabbing a
Few shares here and there over time.

eventually the market will recover and improve.

Where are you getting these numbers from? The entire market is considered overvalued due to the unprecedented injection of trillions into the economy. That money is now being pulled back. If valuations revert back to historical multiples (periods without trillions injected by the Fed), most stocks are currently overvalued by 80-100%.

 

[Mirin4rmfar]

Where are you getting these numbers from? The entire market is considered overvalued due to the unprecedented injection of trillions into the economy. That money is now being pulled back. If valuations revert back to historical multiples (periods without trillions injected by the Fed), most stocks are currently overvalued by 80-100%.

So in other words, there is no recovery from this? .

 

[lib123]

So in other words, there is no recovery from this? .

There is a recovery, but it won't be a 6-12 month recovery like in 2020 when the Fed injected trillions. It will probably be a multi-year recovery. Even for investors who have a long-term strategy, it's wiser to wait for things to bottom out.

 

[NatiboyB]

Where are you getting these numbers from? The entire market is considered overvalued due to the unprecedented injection of trillions into the economy. That money is now being pulled back. If valuations revert back to historical multiples (periods without trillions injected by the Fed), most stocks are currently overvalued by 80-100%.

The market may be considered over valued today. But that doesn’t mean that it will be overvalued 3-4 years from now. I’m confident that by the 2025 Sofi for example will be a stronger company and have a higher valuation.

 

[humminbird]

Robinhood Jesus

 

[lib123]

The market may be considered over valued today. But that doesn’t mean that it will be overvalued 3-4 years from now. I’m confident that by the 2025 Sofi for example will be a stronger company and have a higher valuation.

It may well be a stronger company. But if valuation multiples reset to historical norms, it could have higher earnings but a lower valuation. Cisco, Microsoft, and many other tech companies had much larger earnings from 2001-2010. But it still took them 12-13 years to reach their 2000 dot-com bubble peaks again.

 

[winb83]

Robinhood Jesus

Yeah I got wrecked buying that. Average cost is $15.03.

 

[Da_Eggman]

It may well be a stronger company. But if valuation multiples reset to historical norms, it could have higher earnings but a lower valuation. Cisco, Microsoft, and many other tech companies had much larger earnings from 2001-2010. But it still took them 12-13 years to reach their 2000 dot-com bubble peaks again.

Hmm that’s a scary thought

 

[FaTaL]

There is a recovery, but it won't be a 6-12 month recovery like in 2020 when the Fed injected trillions. It will probably be a multi-year recovery. Even for investors who have a long-term strategy, it's wiser to wait for things to bottom out.

when is this exactly going to bottom out? regular stocks are behaving like otc stocks

 

[lib123]

when is this exactly going to bottom out? regular stocks are behaving like otc stocks

Honestly idk. After major corrections, various scams and corporate frauds are always uncovered that were overlooked during good times. Most new investors started during the pandemic, so major losses will take years for them to rebuild trust. Scary hours.

 

[FreshFromATL]

I picked up some Apple calls right before close. Let’s see if this last into the morning.