@DoctorRob, I agree completely. I often wish I had popcorn, as I watch the antics of market psychology these past few months! I especially love times when I see the same bit of news used as a reason for extreme greed and extreme fear by different groups. All stories. But if Saul taught me one invaluable lesson, it is to invest in the numbers not in the stories.
I found it an excellent exercise to do a survey of the old board favorites which are down 30% - 60% from recent highs. Many of these companies have new product offerings utilizing AI/LLM capabilities, often with very apparent benefit to both their customers and their own profits. Regardless of whatever else is happening in the world, the compressed valuations of these companies makes them look like an ever more attractive investment opportunity. This upcoming earnings season should provide some very interesting data…
When the market is in euphoric phase, companies can report poor or mediocre results, but the analysts and investors will find some positive slant to bid the stock up. This will last until it reverses, and then no news is good enough. Whatever it is, the analysts and investors will find some negative way of looking at it, and the stock will go down. So don’t panic at irrational sell-offs. If it’s one stock, then you have to make sure there’s not something wrong with that particular company. When it’s all your stocks and the pundits are all saying the big crash is coming, relax. It’s just something that they say now and then.
– Saul, Kowledgebase 2019 Part 2