Comment by janderson215
18 days ago
>> the volume is orders of magnitude worse than what caused the 2007ff global financial crisis.
Nobody lives in GPUs and what was the ratio of equity/debt for the toxic assets in 2007?
18 days ago
>> the volume is orders of magnitude worse than what caused the 2007ff global financial crisis.
Nobody lives in GPUs and what was the ratio of equity/debt for the toxic assets in 2007?
It looks more similar to the 1929 crash to me, where "too big to fail" blue chip stocks were overinvested and overvalued, and the value adjustments rippled through the rest of the economy. If NVIDIA does get a meaningful value adjustment downwards, it'll probably survive, but it'll impact the S&P500. People will need to sell off other stocks to cover the losses, etc. etc.
> It looks more similar to the 1929 crash to me, where "too big to fail" blue chip stocks were overinvested and overvalued, and the value adjustments rippled through the rest of the economy.
Yup. Add to that the decade worth of ZIRP following the 2007ff crash and Covid... all that money has to exit the system again eventually.
nvidia's forward p/e is 24. walmart's is 39.
That is exactly the point. These circular deals artificially increase the earnings of company and as a result artificially decrease price–earnings ratio.
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That seems to indicate the market is more confident in walmart's earnings than nvidia's.