It’s easy to grin when your ships comes in and you have the stock market beat…but a man worthwhile is a man that can smile, when his shorts are too tight in the seat..
Ted Knight, Caddy shack
I miss Ted Knight. I know this quote by heart and I learned it before I cared about stocks and markets. I just loved Caddyshack.
The past few weeks have seen a new wave of ‘bubble’ talk. Mark Cuban got it started. I did not read it.
A NYC finance professor just posted a Mark Cuban takedown. I did not read it, but here it is. It’s probably loaded with data.
The professor is using the same fancy data he used to say Facebook was fairly valued at $38/share. He is only off so far by $138 billion. Maybe he should teach at Devry?
I try to live by this saying in the markets….Best tell me what you ARE doing than what I SHOULD do. Price and bubble predictions are useless.
Right now, the animal sprits have been raging in some areas of technology and especially biotech. The same biotechs that our FED chairman #Yellen said were overvalued 47 percent ago.
My problem with biotechs (not so much the biotech index like $IBB) has always been my lack of understanding of the metrics. Take a look at this statistic:
56 of the 89 (63%) stocks in the Nasdaq Biotech Index with market caps of more than $1 billion have no earnings. $IBB
— Bespoke (@bespokeinvest) March 20, 2015
Winning biotechs do have cash flow, so they are not the same say as Gold or other commodities, but the boom is very subjective and highly tied to emotion. I struggle trading emotion other than at extremes.
Nobody knows when the boom will end, but as ted Knight says…’It is easy to grin…