Traders provide much needed liquidity for market players, don't underestimate the value of good trading, most like gambling, a good market maker knows his/her worth...
Yes, a nice way of saying most of us are losers, we provide liquidity to the market instead of collect liquidity from the market.
A cheap earnings option play on those 6 stocks could be traded with QQQ options. Keep that in mind next week for GOOGL, AMZN and AAPL earnings on July 30.
Exiting the market is taking liquidity, if you're buying and selling in the short term, you are providing much-needed liquidity...you need to see the cup as half full instead of empty...
This has been true more often then not in history, leaders dominating markets. Sure when it gets to an extreme it can correct, but earnings are also at an extreme right now ( huge profits for FAANGS losses for majority of companies out there ). Amazon's sales are up 26.9%, what should the stock do ? Google's annual growth is 20+%, what should the stock do ? Bottom line is you won't respect their valuation unless their P/E is 4. So forever basically unless their business get's destroyed like Nortel.
With a PE of 143.7, I don't know. Assuming the growth rate stays at 26.9% in 10 years at the current stock price the PE would be ~15. If sales grows at 26.9% a year, in 10 years the revenue would be ~$800 B per quarter or annual revenue of $3.2 T or about 15% of the GDP of the US economy?
%% Good points; but calling them parasites sounds commie. GOOG has a good search service/AMZN has been a good bookseller in the past. MSFT=not really a tax;using MSFT= a choice. I track Nasdaq, but QQQ more...…………………………………………………………………………… Buy or sell SPY if you want 500/505-LOL