Hearing a lot of "fundamentals and valuation don't matter anymore - stocks can go anywhere."
I have heard this only a few times in my career.
Late 1999/early 2000.
Late 2008/early 2009.
Fundamentals and valuation always eventually matter.
For the sake of clarity: I do not believe the overall indices are in a bubble. Large cap valuations are generally reasonable.
There is, however, wild volatility in consumer and TMT smid caps that is not related to underlying fundamentals.
That is what I am referencing.
And given continued confusion, one often hears these sentiments near significant turning points.
i.e. Tops, bottoms and *really* powerful rotations that are violent underneath the surface of relatively placid indices.
This is why I usually do threads!
You can follow @GavinSBaker.
Tip: mention @threader_app on a Twitter thread with the keyword “compile” to get a link to it.
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