How do you have >10,000 posts and still be such a noob? If you...

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Hingdog

23,628 Posts.

1496

21/09/24

15:11

Post #: 75778203
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Originally posted by Tekvest ↑

Depends what you see as probable. This large bubble is unsustainable and many stocks have no capacity for analysis, they are sold purely on share price gains. EYE Nova is unlucky to be left out. Plenty compare this to the dot.com environment and if it kicks on there will be rampant inflation, but the Federal Reserve seems hell bent on at least another half per cent rate cut by the end of the year.

Either there is a big bang coming, or the Fed is bonkers - you choose.

When the CBA cracked $100 a bunch of analysts were simply agog - it has a shrinking market and nowhere to go for other business opportunities. Its margins are going backwards, its market is being robbed and Australian home owners' arrears are skyrocketing. It has a price to book ratio of 2.71 times, 126% greater than the global average and it is well known as the most expensive bank stock on the planet by miles - its price to earnings ratio is more than 20 times, 65% above the global average. 13 out of 16 analysts recently recommended a sell. Despite that, it is golden real estate in the ASX.

A couple of days ago it hit $144 and a super fund head strategist called it a comedy show among other things, with the parting shot 'this bubble will burst'. Extrapolate this stuff out to AI, yet to be proven for its earnings potential and a whole lot of other stuff and you will get the same result - it is not sustainable.

If the bubble bursts there will be a big mess to clean up.

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How do you have >10,000 posts and still be such a noob? If you think this market is a bubble you clearly haven't seen a market bubble before! There's bugger all stocks participating in the new bull market so far, it's the furthest thing from a bubble market I've ever seen.

Get short buddy, losing money is the fastest way to learn

EYE Price at posting: 17.0¢ Sentiment: None Disclosure: Not Held
7 Upvote

0 Great analysis

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