We will know we have hit the market bottom once people on Reddit stop buying growth/tech stocks. Growth works well when you can borrow money at near Zero% interest. However when the Fed is tightening the money supply & raising interest rates, it's a lot harder to show growth.
We live in a world with potential shortages in Energy & Food because capital/money has been so misallocated that everyone wants to BTD in $WBD or $AMD without thinking where is investment capital/cash going?
The stock market is about trying to raise capital to expand. In exchange for the people's cash, companies issue shares. It used to be you got a dividend. But ever since the Fed printers went brrr in 2011/12 that's no longer the case. Now people would rather invest in Netflixs or Paypal, SQ, or whatever tech company that requires energy to survive. We deserve this market crash. As the world, esp the USA is so detached from reality right now.
If you think buying Netflix/Facebook OTD because it was one of the top 10 companies by market cap 1 yr ago will amke you rich, your priorities are misplaced. 10 years from now no one will care about Facebook or Netflixs. They produce nothing. They are the tobacco of the 2022 era. A luxury for a world that became too used to cheap food & energy and forgot to invest in food & energy for over 30 years.
Leave a Reply