Speaking of 5% on the nasdaq Microsoft just knows one way, up. Doing some quick math. If Microsoft continues to move the way it's doing it will add $2 trillion in market cap by end of 2020! What I'm saying is that this is impossible, eventually law of large numbers will catch up with each and every one of these companies. And what I mean by companies I'm talking about the handful of companies that are helping the nasdaq to continous new highs such as Microsoft, amazon, apple, and the rest of those multi hundred billion dollar market cap companies...
Index ETFs are the best thing that ever happened to industry leading companies. Like I’ve said this is the new bubble.
These posts are pointless; you were extremely negative about Microsoft buying LinkedIn and the stock has been one of the best performers since. The very top IT companies are dominating business like at no other time in history; profits are massive after they found out how best to use the internet to make money with growing global markets. All you come off here is hindsight analysis saying valuations are high now; you said that years before. Turns out the old valuations were quite reasonable. Guaranteed a lot of people thought the same thing about Microsoft in the 1980s and 1990s. I distinctly remember people questioning how competitive they were against numerous opponents and they crushed most of them. We don't need continued explosive growth for them to be investment grade companies. Microsoft may have run a little hot but companies like Google were dragging their heels price wise for two years.
Eventually valuations will become so stretched that earnings won't validate it's own stock price and market cap. With a 30+ PE on Microsoft that seems extremely rich. But we all know that in bubble markets anything and everything is possible.
All true except for one important point. The opposite of not "up 5% per week/day/whatever" is not necessarily -50%. That is the flaw in your argument. We could be +0.001% for 10 years or whatever.