Loading ...Just A Matter Of Speed & Degree
Any investors, hedge funds, money managers etc. would be crazy to continue to hold onto the Magnificent Seven specifically and the NASDAQ 100 generally. Given that before this correction started they had outsized gains for the year(and still are up more than stocks usually gain annually on avg.) mean reversion is only a matter of over what time frame. If your annual performance(and possible bonus) depends on keeping those gains for the next 3 months, all one has to do is book your profits, if you haven’t already, and buy 3 month T bills earning a 5% annualized return. Putting aside the fundamentals, the earnings in many cases are not going to live up to expectations, despite any benefits from AI, and the price earnings multiples are historically way above normal even for high tech companies. It is only a matter of how fast and over what period of time, the NASDAQ 100 stocks, mean revert at least back to where they would be before this crazy run up, and knowing that markets overshoot both on the upside and the downside, even lower than where this run started from.
“It is only a matter of how fast and over what period of time the NASDAQ 100 stocks mean revert”
So what’s your point? Short and hold? Forget about stops and money management tools? Don’t bother with charts, just buy a narrative and sit back for your eventual payday?
And so you advise ignoring this adage?
“The market can stay irrational longer than you can stay solvent.”
And then, wasn’t it shares down and PMs up? For “leverage and excitement”?
Come back with your nonsense after the NASDAQ 100 takes out it’s high from July. I doubt based on the chart and the technicals it even taakes out the high from Sept 1. The chart indicates a continued decline confirming the mean reversion argument. Instead of your BS present some technical based evidence of why they should go higher. Post your own findings, stop trolling mine.