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  • adrianoal

    Member
    September 1, 2023 at 1:40 pm

    Quote from DOCDAWG

    These days, a lot of people who hit homeruns in this market on individual stocks just got lucky. It (luck) counts, but it’s hard to repeat.

    Plus, as long as indexing is around and distorts the market as much as it does/has, valuations are really just silly and essentially meaningless with the top stocks.  

     
    I generally agree with this, and the Michael Burry sentiment that this has resulted in a bubble of sorts in certain indices (e.g. S&P 500). 
     
    But:
    (1) The market can stay irrational longer than I can stay solvent.
    (2) Don’t fight the Fed.
     
    So, not sure exactly how to handle the situation that “The Lords of Easy Money” have created. I do think it has black swan potential, but are you just supposed to sit in short-term T-bills until that happens?