/biz/ - Business & Finance

>>6943451

As an addendum to this. If you see it happen once, you will see it happen across a number of different diversified groups, it just happens in a specific order, Emerging markets, biopharmaceutical, etc.

People will say certain stocks are not behaving rationally and in a lot of cases since people just buy ETFs the pessimists are probably correct.

However, there's only a small window and it begins with people thinking things are rising irrationally, then they capitulate and trends die in Euphoria.

I heard that Netflix has a P/E ratio of 600+ from somebody today. Think about that. If someone bought that company from the Edward the black prince during the 100 years war in France, they would just be breaking even this year.

Netflix would require a user base of 1billion just to have that ratio at around 25-35.

One day people will all say, well of course it was overvalued, if there is a recession and people lose their hats. Today? It doesn't matter.

I think you guys see a lot of the pumping of assets with crypto. There will be an accumulation phase and then pump/dumb. The difference is that when this happens in normal markets there are more people to absorb the dump and offer better liquidity to the people who created the trend. The "funds" will eventually buy these things for the sake of diversification.