I'm a bit of a newbie with stocks and have only really been trading since the beginning of the year. What I've noticed when reviewing stock prices over time for the many stocks I now have is that everything was so much higher last fall and summer. I realize that the market was seriously over-inflated because of Covid and all that fun, but I'm just curious how far people think it can reasonably recover. Can I look to earlier this year or spring prices for a better idea on where most stock prices should eventually return to, or are we now just in a much much lower market?
My main reason for asking is to try to figure out which stocks to hold long term and which to take short-term gains on. For example, I bought Carvana at $21 a share and it's now over $30, which is a good profit. But when I see it was trading for over $100 a share in April, I think that maybe I should keep it in my long-term pile to hold on to. I know it won't get back to the $300+ it was trading for in the fall anytime soon (if ever), but it's just insane to me how much all the prices have fallen in just a year. And when I see a similar pattern of dropping prices in a majority of my stocks, I'm thinking that they will eventually regain some value — but how much? If they have all fallen by 60-70%, I can see that most of it is because the entire market has dropped and not just that one stock.
I know it's different for each stock, but in general how much do people think the market will rise back up?
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