Is Nasdaq Overvalued?

Discussion in 'Trading' started by HeSaidSheSaid, Apr 5, 2017.

  1. a lot of NASDAQ stocks are getting over 100$ mark. somebody is going to sell a lot of breads to make up for the cost.

    At this rate, AMZN is not going to hit 1000$ if the FED unwinds its balance sheet too soon.

    it seems Trump is not able to carry through many of his campaign promises. I think Trump is not a good politician, and he dislikes people and dealing with people. He's a good dealer only if his own money is on the line. I think his mind is wired for dealing with little things. Certain petty things could set him off :).
     
    murray t turtle likes this.
  2. Overnight

    Overnight

    What does Trump have to do with NASDAQ? I do not follow you.
     
    motif and murray t turtle like this.
  3. algofy

    algofy

    Is the new buzzword going to be "unwind"?
     
  4. is the sky blue
     
    i960 and nastynasthat like this.
  5. JackRab

    JackRab

    I would say anything Trump says has more to do with non-tech than with tech stocks...

    I've heard the Trump might be illiterate... that's why he's wired for little things. Doesn't like the teleprompter, because he can't freakin' read the damn thing... He likes charts and graphs above textual reports... and he says he wasn't properly briefed on that muslim ban order and signed for something he didn't know was in the order... BECAUSE HE CAN'T READ... W T F :wtf::wtf::wtf:
     
  6. SteveM

    SteveM

    Yes, the Nasdaq is overvalued by every single traditional valuation metric except it's earning yields relation to treasury yields (and these treasury yields are almost guaranteed to be increasing over the next five years, so the one "cheap" valuation metric is moot point). The S&P500, DJI, Russell 2000 are also overvalued just as much as the Nasdaq is. Eventually, all of the indices will trade below today's levels by a considerable margin.

    Also, all of these indices could fall by 40% tomorrow and would not be particularly cheap relative to their earnings on a historical basis. In the 1970s, US stocks traded down to 7x earnings. Today they trade at 26x earnings. Most investors that grew up during the 1982-present perpetual bull market conditions don't appreciate just how cheap things can get.

    Does that mean an immediate crash coming? No, probably not - stock indices in mature bull market don't just suddenly turn over on a dime and die - there is a topping process that takes place 99% of the time. It also does not mean that the stock market will have a massive -40% correction either - but some meaningful correction is a statistical certainty.

    This process will play itself regardless of what Trump is able to accomplish, and it would not matter who is president.
     
    cr8or and algofy like this.
  7. SteveM

    SteveM

    During the campaign trail he used to frequently read a poem to the audiences off of a piece of paper at the podium - also during the RNC, Presidential Inauguration, and recent address to Congress, he read off of teleprompters for an hour uninterrupted and did not struggle at all.
     
  8. JackRab

    JackRab

    I'll just put on me conspiracy theory hat.... maybe he had an earpiece in which Pence was whispering ;)
     
    Lou Friedman likes this.
  9. Turveyd

    Turveyd

    No such thing as over valued, cause there is no real value in any of it, it's perceived value, perceived value is still higher than current hence going up, until perceived value changes, don't stand in the way of it.
     
    cr8or likes this.
  10. Turveyd

    Turveyd

    Ever Watch "Idiocracy" film, where stupid people are considered clever and idiots fly all the planes do the science and the Pres is the dumbest of them all, very funny and it's happening isn't it.
     
    #10     Apr 6, 2017