Not sure if y’all take listener questions, but I wanted to get Martin’s and your take on something I have been thinking about lately. I’m in my early 30s and have been investing since I started working (maxing out HSA, 401K and contributing to an investment account). When the market tanked for a couple of days after Liberation Day, I was initially upset at the losses but then found myself almost relieved to an extent (but probably not in the manner that most people were). I was relieved because I think a lot of the equity market is overvalued because the equity market has become a thing in and of itself, separate and apart from the companies earnings/profits that the stock represents. As a result, I think the market will essentially recalibrate at a certain point in time to more accurately represent the companies’ actual earnings/profits as opposed to potential valuations (for example, a lot of tech stock, such as Tesla (pre-DOGE), is extremely profitable when the financials don’t exactly align with the stock price). An example of this is in the hbo show Silicon Valley in which they discussed how they want to generate zero or negative revenue in order to show investors that they are pre-revenue to essentially set their own valuation (I didn’t know if we could post YouTube clips here, so I refrained).
TLDR is whether y’all think the market will eventually recalibrate in order to better align stock prices/valuations with companies’ financial metrics (GAAP measures, not non-GAAP financial metrics) or if the constant incline of the S&P 500 and increasing equity prices is in a different sphere?
TLDR is whether y’all think the market will eventually recalibrate in order to better align stock prices/valuations with companies’ financial metrics (GAAP measures, not non-GAAP financial metrics) or if the constant incline of the S&P 500 and increasing equity prices is in a different sphere?
