I haven't invested since August, and their haven't been any dips in the market since early November. Even then, it was a small dip and the market shot up 800 points or so for the next few days. The market also seems to not be making any sense because every time the unemployment numbers are increasing the market shoots up.
It's mainly due to injections of liquidity from the fed reserve. But, at some point the house of cards has to fall. A lot of these companies that are going up are IPOs that solely went up because of niche markets that would not have been as big if the coronavirus had not have happened ex: peloton, zoom, some cloud stocks etc. Now it's hard to even find a stock under $100 because the whole market has been overflooded with newby investors, liquidity, and activist hedge funds that are trying to keep retail and manufacturing relevant that is keeping the blue chip stocks propped up as well.
With that said, at these prices is it still worth it to buy a couple shares of these overvalued firms like Zoom, Netflix, Amazon, Peloton, Tesla etc.
Look for another IPO that may or may not go up? Draft Kings, Air bnb, Snowflake, beyond meat, rackspace, etc
Or just wait it out logically like Buffett used to say in one of speeches be patient and only buy something if you know you can hold it for 10s. However, the more I feel I'm waiting the more I feel like I'm just letting my money sit doing nothing and I'm losing out on opportunity cost. These values just make no sense though, and every IPO that comes out sees even higher percentage gains than the one before it. The regular blue chip stocks that are steady like Microsoft, Visa, Proctor and Gamble, Walmart etc that seem like the best companies profit, revenue, and management wise don't rise up in value near as much as some poorly invested startup IPO in a niche market that has negative earnings every quarter. It just makes no sense.
So, basically is it still worth it to invest in 2021, or should we all just sit out and wait for it to drop like how much higher can it go?
And if so what makes for better investments in our current times blue chips that are less worrisome, tech companies, solar/renewables, or IPOs?
Submitted January 02, 2021 at 10:33PM by ElectricOne55 https://ift.tt/39axju3
