Bear having an existential crisis…
This pretty much sums up one of my major issues with the momentum investing gang over there. A company is a great idea at $150/share provided growth is at X%. If growth goes to under Y%, then it is utterly worthless and shouldn’t be bought even under $60/share.
Just shows there is a complete and utter failure to have any accounting for valuation in their investing equation. Nor is there any entry/exit price strategy.
Who wouldn’t buy DDOG today at $63 if they thought it would go to $150 in a year or two? Yet a “valuation doesn’t matter” approach doesn’t allow them to take gains at $150 or even $300, if growth is stable or accelerating.
It is as if “macro” is a non-existent word in their world.
I am sure it will all work out just fine. No way QQQ or SPY could drop 10-20% from here. Right?
Dreamer