Sifting through the noise is always easier said than done. The markets inevitably push higher, this is their most natural state. With extreme valuations and even faster rises in individual stock prices this year (ie. $ZM). One begs to question: how much higher can we go?
When the market seems to be irrational, there is money to be made, and lost. Volatility allows for huge swings. The market is infatuated with FOMO, which leads to “investors” accepting higher prices. In a certain time period, this isn’t sustainable. It could be decades before some stocks reach the levels they are now. The market in the long run is rational and will eventually correctly price these positions, as it always does.
The time now is to sift through the noise. Find the companies that will transform the way we go about our lives and stick with them. The next time they go on sale, it’s a buy. Every analyst on the street is reiterating price targets with higher numbers because it is much more profitable for them for investors to keep buying higher. And remember, they are wrong more often than right, we just tend to forget the losses.
Be safe out there kids.
