Sunday, February 25, 2024

US stock market AI stocks in worst bubble......

US stock market is being dubbed in worst bubble since dot com days....

Above headline or any comparison shows lack of knowledge or playing with facts / disinformation

Credibility is lacking in every negative talk about AI or NVDA

Financial journalism is full of people who talk their own " vested strategy " where facts have no role.

Most pundits / many traders never spotted NVDA'S first mover advantage early or now...thus their cynicism is very obvious...

AI is here ......

AI will impact everyone of us in more ways than we can even imagine

AI will last as long as Industrialization exist or productivity is a focus by individual, companies & society @ large

AI is a much bigger phenomenon than most pundit will ever understand

AI.....we are just getting started to get off ground level.....

We are in year 2 of 100 years cycle......which will keep evolving in many forms...

AI IS & WILL disrupt every aspect of our lives in more ways that can be imagined by us MORTALS....

NOW.....let us examine the " bubble & DOT COM valuation as many highly paid geniuses are hammering on us on an hourly basis in all form of media....

Here  is forward PE of few stocks to make my point of valuation :

MRVL        33.62

AMD         32.39

NVDA       26.94

AVGO      23.17

INTC       19.19

TSM        18.40

Median forward PE is 25.62 as it stands today....

Most companies " beat & raise going forward which does NOT reflect current forward PE "

IF you care to look S&P 500 forward PE IS......compare that with above listed fastest growing companies ...

Dot com days .....or bubble days...had either " zero earnings " or PE in 150+++ range.....truth is very important as " disinformation is being spewed every second in financial press / TV...

Good luck with your own homework, conviction and resolve to catch the next wave of growth.

BLOG does NOT give buy or sell.

Saleem

3 comments:

Stocks100 said...


Hi Stocktrader,

Last week UP 3.64%

YTD Down 10.50%

Saleem

stocktrader_1996 said...

Hi Saleem,

Last week: +3.96% (YTD: +2.40%)
Portfolio Leaders: SMCI SOXS(upon sale) ULTA
Portfolio Laggards: TYGO PSNL MTRN

It was a good week for the portfolio as some opportunistic trading locked in gains at key times. A huge relief rally after NVDA's earnings propelled the major indices forward, but the small caps once again lagged and are still down on the year despite the good tone to the market overall. This week sees some more important inflation data, and with it hopefully some more clarity on interest rates. There's also a number of important companies reporting this week despite what is usually a quiet time, so I look forward to seeing some of these to help set a broader tone. For now I stay mostly defensive as I await more info and ideas.

Holdings: TZA(x2) ULTA MTRN SOXS AGCO IONQ PSNL ZENV, cash 12%

Stocktrader

Stocks100 said...
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