The times, they are changing
Yo Eddie...The companies you mentioned don't currently have good fundamentals. As you correctly stated they are overvalued...BUT...they HAD good fundamentals, and joy to the folk who recognised it and took positions in them early.
What we want to find is undervalued companies with good fundamentals, good long-term growth potential and low risk. There are many and the list is growing. We are well and truly on the other side of the longest bull market in history and the old rules no longer apply. There is a current shift to safe, low risk; transparent stocks (good businesses) it will only serve to weed out those stocks and investors who can't or wont see the trees through the forest. Nothing lasts forever and anyone who joined the market in the last ten years will have only experienced the icing on the cake, but there is a new cake being made now and the beaters are mixing.
Last year was the worst year for funds in 14 years, what does that tell you? PE's are falling, money leaving the market, accounting fraud, terror and war fears, TA analysists are getting smashed. Insto's are headed for safety and it's all fundamental from here, they can't afford another year like last year.
I love the market, it has personality, and I can't wait too see what happens in the next two years cause the last two have been a blast.
PS. I am an optimist and believe in good change management.
