Is Stock Market..Entertainment or Economics ⁉️

Greetings ‼️

Stock Market reality of present days…

TESLA – p/e ratio stands at 1,208.57 (Closed at $609.99 on Friday 11 December 2020)

DOORDASH – Unprofitable Company getting $55.59B Market Capitalization

AIRBNB – Unprofitable Company getting $82.98B Market Capitalization

However, nothing wrong in this as there is no universal theory across the Business Models through which one can understand the worth of a stock.

This is nothing less than an Entertainment “OR” systemic unfairness towards You. Agreed…

So, either You will participate in the madness or would regret the feeling of Missing Out.

AND, when the true calling come then Crowd would start shouting Scam, Scandal to loot them up. Remember: 2000 DotCom Bubble, 2008 Financial Crisis, and now 2020 Covid-19…

However, there are few exceptionals, for example:

The Chinese Regulators halted ANT Group’s giant IPO two days before launch – that is on 3rd November 2020. Otherwise, ANT initial public listing would have valued it at $313 billion setting a new world record.

However, China’s act of halting IPO just two to go before Launch is also an Entertainment.

Serious Problem Explained in form of a fictitious Story…

“Story goes like this, once there were so many cobras in Delhi, that a bounty placed on each dead one delivered to the government. At first, it worked. But then, entrepreneurs began breeding cobras to garner more income from the bounties. When the authorities figured out the scam, they canceled the program.

The problem came when the breeders, who had a large inventory of cobras, released them into the wild. With the demand (the bounty) for the snakes removed, the cobra population exploded worse than before.”

Bottomline: Here Snakes means stimulus (liquidity)… will cure be worse than the disease ⁉️

Under this backdrop you have the following Choices,

Gold / Silver

Productive Land / Building

Profitable Business Ventures

NIFTY ETF

Gold is money, gold is insurance and gold is financial survival. For 5,000 years, gold and silver have maintained their value against inflation and there has been no permanent replacement for gold.

“Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it.”

Alan Greenspan former Federal Reserve chairman said about Gold in 2014

Buy “NIFTY ETF” at lowest possible average rate only to hold for long enough would generate very good return.

however, For that you need to be aware of few more things, like,

Bear markets end on bad news. “AND” Bull markets end on good news.

“Corrections” generally occur over short time frames, do not break the prevailing trend in prices, and are quickly resolved by markets reversing to new highs.

“Bear Markets” tend to be long-term affairs where prices grind sideways or lower over several months as valuations are reverted.

And we can make a Plan B… because NIFTY ETF does not provide Regular Income Stream and just in case the unthinkable happens. Because if 2020 has taught us anything, it’s that absolutely anything is possible.

Thanks for Reading…