Submitted by TheSneedles t3_yaugnw in wallstreetbets
Last - last Thursday we had a horrible CPI print and the market rallied nearly 3%. Nobody knew why, but I’ll tell you why. That day at 9:30, the open was the first time the SPX and DJI were at a discount in terms of 12 month trailing valuations, for the first time since March 16, 2020. You know what happened on March 16, 2020? If you were around, you’d know that volatility peaked on the 16th. It also peaked that Thursday.
These two facts are the reason there has been unfettered buying - institutions and retail are playing this market like the COVID downturn, and if the COVID downturn taught you anything, it’s that fundamentals don’t matter, and if the fed were to actually bring the pain, this nation would be insolvent.
There is record liquidity in the system, you will never see cheap assets. That’s why there was unfettered enthusiasm in ad stocks after SNAP roiling 30%, and the Dow soaring 900.
We hit the bottom, I have a 4,000 dollar bet with my 67 year old father that this is the case, and I’m willing to make the following additional bets, found at the bottom.
Record cash is flooding back into the market, electronic trading has killed reasonable valuations, and as someone from the mid 80s it hurts, but you have to roll with the punches and throw money in this fraud, speculative driven market, it’s just the way it is.
MODS If SPX does NOT close up 2% on Monday October 24, ban me for a week
If SPX reaches a new 52 week low, before making a new 52 week high, ban me permanently.
If SPX does not reach 5,000 in 500 days, ban me permanently.