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Gruntz
RE: Down goes the Dow

Ghost of Igloi wrote:


Brick Lee wrote:


Ghost of Igloi wrote:

Sure. The way you want to think about it is during a Bull Market people are extrapolating higher growth well into the future driving multiples to extremes. At some point the weight of expectations is a mismatch with reality. We saw that recently with AMZN falling in a relatively short period of time from 2,050 to 1,490. At the moment the market is re-rating a proper multiple, so at the lower price the stock is still expensive, but obviously quite a bit less expensive than a few weeks ago. Of course this same dynamic functions in reverse in a Bear Market.


I’m gonna go out on a limb and guess that J. Hardee knows how the market works.


OK, then this is for those who post here frequently that evidently do not.


I’m gonna be nice to you and not take a swing at that slow-pitched softball.

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