Stock market, a victim of cravings? – Finance

If you have friends who invest in the stock market, you will find it difficult. However, the financial markets are disgusting now, I have no other words to describe the current situation.

All you have to do is sit still. As stock market commentator Mark Fiorentino would say, “Do you jump out of a plane window when you’re told we’re in a turbulence zone?” Those who have reduced their share in the capital to the lowest possible level are the best at the moment. If this is your case, you will probably be able to make a balance a little later in the stock market when the storm in the stock market calms down. If not here’s a new product just for you! to manage and first of all not to go against the markete. What makes me think of this joke of this woman who hears on the radio that the car is going in the wrong direction on the highway. She calls her husband, who has just left for work, and tells him: “Be careful, darling, there is a moron who is going in the wrong direction.” And the man answers: you’re kidding, they’re all going the wrong way. ”

To be a little optimistic, I think that today it is Mark Fiorentino who best describes the current situation in the stock market: we see what he calls “revaluation”. It simply means that what was abnormal is becoming normal again. Obviously, when interest rates were 0% or even negative, there were no alternatives, all investors rushed to stocks or cryptocurrencies to make a profit. And it worked, because there was no alternative. Today, interest rates have risen, so there are alternatives. Proof if you want to buy US government bonds, they bring you 3.35%. Even German government bonds, which only had a negative yield yesterday, give you 1.62% today. Of course, if you take into account inflation, profitability is largely negative, but at least you have an alternative

What does it mean ? This means that technical reserves of free money, inflated with helium, deflated, and sometimes lost up to 90% of its value. This is the case of companies that have not yet made money and that lived by the promises of a magical tomorrow. This also applies to many cryptocurrencies, but it also applies to major technology stocks or stocks in the luxury sector. Not that the latter were not inherently good, but their assessment was exaggerated precisely because of the lack of alternatives.

In fact, this is what Marc Fiorentino tells us: this general “overestimation” is normal. Negative interest rates, empty shells that cost a fortune, photos of boring monkeys worth millions of dollars, unicorns without a business model and stock market nuggets that were actually “fakes” were abnormal, as well as very beautiful companies that were inflated in an aberrant way. ». The only thing to remember is that when there is a “revaluation”, it is an exaggeration. Normally, there was an exaggeration or even euphoria on the rise, today there is an exaggeration on the decline. After all, always remember that “by betting on the wind, we collect drafts.”

All you have to do is sit still. As stock market commentator Mark Fiorentino would say, “Do you jump out of a plane window when you’re told we’re in a turbulence zone?” Those who have reduced their share in the capital to the lowest possible level are the best at the moment. If this is your case, you will probably be able to make a balance a little later in the stock market when the storm in the stock market calms down. If this is not the case, you will just need to stop and, above all, not go against the market. What makes me think of this joke of this woman who hears on the radio that the car is going in the wrong direction on the highway. She calls her husband, who has just left for work, and tells him: “Be careful, darling, there is a moron who is going in the wrong direction.” And her husband answers: but you’re kidding, they’re all going in the wrong direction. ” To be a little optimistic, I think that today it is Mark Fiorentino who best describes the current situation in the stock market: we are witnessing what he calls “revaluation”. It simply means that what was abnormal is becoming normal again. Obviously, when interest rates were 0% or even negative, there were no alternatives, all investors rushed to stocks or cryptocurrencies to make a profit. And it worked because there was no alternative. Today, interest rates have risen, and there are alternatives. Proof if you want to buy US government bonds, they bring you 3.35%. Even German government bonds, which yesterday had a negative yield, now give you 1.62% Of course, given inflation, yields are largely negative, but at least you have no alternative. What does this mean? This means that technical reserves of free money, inflated with helium, deflated, and sometimes lost up to 90% of its value. This is the case of companies that have not yet made money and that lived by the promises of a magical tomorrow. This also applies to many cryptocurrencies, but it also applies to major technology stocks or stocks in the luxury sector. Not that the latter are not good in nature, but their assessment was exaggerated, precisely because of the lack of alternatives. In fact, this is what Marc Fiorentino tells us, this general “overestimation” is normal. Negative interest rates, empty shells that cost a fortune, photos of boring monkeys worth millions of dollars, unicorns without a business model and stock market nuggets that were actually “fakes” were abnormal, as well as very beautiful companies that were inflated in an aberrant way. ». The only thing to remember is that when there is a “revaluation”, it is an exaggeration. Normally, there was an exaggeration or even euphoria on the rise, today there is an exaggeration on the decline. After all, always remember that “by betting on the wind, we collect drafts.”

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