Comment by A_D_E_P_T
5 hours ago
This is comical because economies have become totally divorced from hard reality and markets are now vibes-based.
Nvidia, Tesla, and Palantir (trading at 450 P/E!) are, among others, essentially meme stocks. But, for better or worse, the US economy is riding that wave.
The way to revive a moribund economy isn't to insist that markets must be rational and that hype should be tamped down. This never works, and I think that the rational market myth is dead. (You could make the case that BTC was the final nail in its coffin.) Instead, you've gotta find a way to ride the wave -- but wisely, so that you don't stand to lose too much if/when it slows or hits the breakers.
I don't understand why Palantir is always thrown in with the AI bunch. Yes, they market products using AI. But their core business is products and consulting for surveillance. I'm bullish for Palantir because I'm bearish on freedom. All major democracies are turning into surveillance states. And von der Leyen is making sure EU does as well.
Yo, they're trading at 450 P/E. Enough said, really. Whatever's going on, it's plainly detached from physical reality -- nothing they sell or provide can possibly justify their valuation.
They are a boogeyman like Soros
It maybe it's because their value makes absolutely no sense.
> ...that the rational market myth is dead.
Was there ever such myth? There is a quote attributed to John Maynard Keynes (1883-1946): "The markets can remain irrational longer than you can remain solvent."
> Instead, you've gotta find a way to ride the wave -- but wisely, so that you don't stand to lose too much if/when it slows or hits the breakers.
Care to elaborate? Are you talking about stop losses? Options?
The former is a form of market timing and hard to get right. The latter is complicated.
Imo just buy the entire market at your appropriate risk tolerance level.