Hi there,
Hope everyone is doing okay today. I've been watching markets for years and have definitely been in tune with 2020's various twists and turns for investors. I usually conduct several hours of research before even considering investing in a stock. My usual strategy involves sticking with businesses I understand and staying away from investments I feel are clearly overpriced.
In this market, I'm noticing that certain meme stocks are king. Plug Power, Tesla, Jumia Technologies, Nikola (previously), and others have run far away from a level where many investors are comfortable making a purchase. I've also noticed that the returns of several friends and family members are absolutely trouncing the rest of the market. These individuals often conduct less than one hour of research and barely know the P/E, P/S, or business model of the stock they are trading.
Are there risks in these markets? Have we shifted to a new paradigm where everybody should just buy TSLA, PLUG etc. and just coast to retirement in 5 years? If this can continue, surely you would think that pension funds would toss those 2% bonds in the garbage and buy such securities.
Please correct me if I'm wrong on any of the above, I'm curious about people's thoughts here. Thank you and have a great holiday week.
Submitted November 23, 2020 at 05:31PM by WallStreetWiz23 https://ift.tt/36VAdBq
