The raging bulls were so sure of themselves a few months ago. Valuation measures were for suckers. This time was different. It’s the new Obama economy. Profits are so old school. I suddenly sense a little panic amongst the big swinging dick Wall Street traders. Not too much scorn and laughter being directed towards John Hussman lately.
I wonder if the brainless twits and shills on CNBC will be telling their audience that the S&P 500 is now lower than it was in May 2014. That’s right. Anyone in the stock market over the last 20 months hasn’t gained a penny. The S&P 500 is now down 11% from its all-time high in May 2015. Only 40% or 50% more to go to reach fair value.
Remember the can’t miss hot stocks being touted by Wall Street and their CNBC mouthpieces? The IPOs were being rolled out like crazy in 2015 and the stocks would soar to heights not seen since the good old Dotcom bubble. Let’s take a look at those fantastic can’t miss opportunities of a lifetime:
GoPro – Down 83% since August
Twitter – Down 65% since April
Fitbit – Down 63% since August
LinkedIn – Down 27% since March
Netflix – Down 20% since December
And of course there are the heavyweights that everyone must own:
Amazon – Down 17% in last two weeks
Google – Down 10% in last two weeks
Facebook – Down 14% since November
And this is just the beginning folks. These heavyweights are overvalued, overbought, and over owned. They will need to fall at least 50% to be fairly valued.