Are we in a dot com bubble V2?

credit : seeking alpha

Hi guys! Maybe some of you have noticed that all stock prices are soaring recently. Companies doing IPOs got their stocks bought massively like this company UTime, a Chinese maker of mobile phones and accessories. Its share price started at $4 a share at the opening of the IPO. The next day, it hit a peak of $107.33 up nearly 2600%. Boy, if you couldn’t call that a bubble!

From $33m to $679m of valuation in two days. You were saying bubble? Credits : Bloomberg

Investors just have one thing in mind. Buy tech stocks. Whatever can happen the tech stocks can only go up.

So guys, just be careful. This attitude can be categorized as growth investing. You don’t care about the real value of the company, you don’t care about the company’s intrinsic value. All it does is inflating the bubble and you should already be thinking about your exit. Say you want a 20% return and then you sell the stock. Wait a moment you said 20%, we want at least a triple-digit return with tech stocks so be it 100 or 200% return before you think about selling it.

credits : meme generator

Again, be advised that when the tide turns, whatever the economists say about the modern economic theory or about this time it's different, just remember that when everybody wants to bail off, the door will be too small.

You and other investors
The exit door. Credits : Pinterest

Don’t put all your economies in tech stocks. Diversify. I personally get 40% of my wealth in cash, 10% in commodities like gold/silver, 20% in crypto, 10% in various stocks including tech, and the rest in standard ETFs like SP500. I believe in dollars because you know what? When inflation arrives, prices of consumer goods go up because the pandemics are over and people start going out and spend, what do you think that the fed will do? Will they sacrifice the dollar and save people who have a lot of debt in dollars to buy real estate or stocks? This will mean a Weimar Republic type of scenario where people can burn their dollars because it's so meaningless that people will use dollars to heat their home in winter 2021 / 2022.

Weimar style hyperinflation in the 20s. Failed state style. Do you think that the Fed will allow this to happen to dollars?

Or, the fed will say f*** the mid-class citizens with their home loans and their stocks, we raise the interest rate to save the dollar from losing its value and this will instantaneously bring real estate prices, growth stocks down, to its knee. Investors will seek after bonds and value stocks (Buffet-type stocks).

Yeah, think about it, which of two scenarios are most likely to happen when people start consuming again. Please tell me what you personally think.

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Hi! My name is Edwin, I am a physician, data analyst, and entrepreneur. I am passionate about preventive medicine, health food, sports, and traveling.

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Edwin Pitono

Edwin Pitono

Hi! My name is Edwin, I am a physician, data analyst, and entrepreneur. I am passionate about preventive medicine, health food, sports, and traveling.

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