“Be Fearful When Others Are Greedy” Is the Perfect Description of the Stock Market Right Now
A quote from Warren Buffett to provide caution
This time in history makes me nervous.
The financial markets have become the wild west. The 2008 crash looks overhyped compared to right now. The 2000s Dot Com Bubble is nothing more than a dinner party joke compared to right now.
An article titled “Profits? We Don’t Need No Stinkin’ Profits!” explains the current phase of stock markets better than I ever could.
The less profit a company makes and the more cash it burns, the better it does.
The GameStop story is another simple example of the stock market madness. A group of Reddit pirates had enough of traditional finance. They rebelled by using social media to pump the price of GameStop’s stock. Their enemy, the hedge funds, tried to use their financial brilliance to fight them. They placed trades (shorts) betting the stock would go down. Reddit investors pumped the stock further, which took out their short trades. Hedge funds lost money. The war was won on the battlegrounds of GameStop.
Tesla is another stock clearly doing backflips at the circus. Their stock price has surged more than 695% in recent times. Tesla is worth more than…
