Forum Topics Hyper Inflation? Stock Market Collapse?
KalkineMedia
Added 5 years ago

Amid the ongoing recovery in the Australian economy, market participants are eyeing those stocks where see considerable growth potential. In the last month, several ASX-listed companies have come up with their quarterly updates or other recent developments focussing on achieving their future objectives.

Price is Less albeit Opportunities are Immense; Invest Wise with Kalkine LITE Just at $19.99

Compared to large-cap and mid-cap stocks, small-cap stocks provide investors with high growth opportunities. However, these are volatile and risky investments, and only investors with risk appetite prefer these stocks as they generally outperform both mid-cap and large-cap stocks.

0
Chagsy
Added 5 years ago

Stanley Druckenmiller on how to position your portfolio for the coming rise in inflation and the US losing reserve currency status, among other stuff.

https://vimeo.com/548917378

I would also recommend reading

the death of money

 

10
Rapstar
Added 5 years ago

I AM CALLING THE BOTTOM FOR GROWTH COMPANIES.

My US holdings, which are all software / hyper growth businesses, have all hit relatively consistent lows over the past 3-4 months. They all seem to be hitting s consistent low point, before recovering - They have done it about 3-4 times now, and did it again on Thursday.  

I am going to stick my neck out and call the bottom for growth companies was last Thursday. My portfolio was up 7% overnight, which indicates to me there is strong support at Thursdays lows.  Insane volatility.   

Assuming there is no black swan,  I reckon the price points below represent the bottom:

CRWD bottom: $175-$180

SNOW bottom: $185-190

UPST bottom: $80-85

DDOG bottom: $73-78

Lets see if the market will make a fool out of me, or make me look like a genius -Most likely the former. 

But hang in there investors - remember you are playing an infinite game.     

 

20
Bear77
Added 5 years ago

I hope you're right @Rapstar, I recently bought SNOW for my daughter (my nickname for her has always been "Snowflake") after setting up a US trading account using Pershing via Commsec, and I paid around $230/share, which looked good at the time.  I haven't been too worried about the recent falls (to $185) because your investment thesis (in your newsletter) was very compelling and I'm convinced they're going to be huge in the future.  I am used to volatility, so it doesn't phase me much, as long as I am confident in the investment thesis and I think I understand the reason for the volatility, and in this case it's clearly inflation concerns feeding into tech stock valuations being revisited - as Andrew has pointed out in his email to Strawman.com members this morning.  I also watched the latest Planet America last night in which they interviewed a lady in the US who explained that the spike in inflation was expected (reopening, vaccine roll-out) and should settle down almost immediately, and that anyone extrapolating that sort of rise in inflation into the future in a straight line is not on the right track at all.  As usual, overreactions, as we've come to expect.  I think you're on the money with your prediction Sean, or very close to it.

12
Mark1
Added 5 years ago

I always thought Fundies and big brokers must have breakfast together reading the WSJ /AFR: "Market to Crash Today - Job Figures out/Inflation up/Bad Budget/ Govt is stupid, etc"...

and then all orchestrate a plan to sell off Tesla, Afterpay, et al

 

I just can't see the human behaviour in sane big brokers changing course like they suggest Robin Hooders do.

 

So, I'm relaxed that this week's dip is just that. There is no real underlying cause, and, as a long term investor I stand the ground.

 

If it's a major rout then there's little I can do except hope my diversification away from Australia means the recovery will be quicker than the GFC or Tech Wreck.

 

And, yes, if I had cash I would be buying... But then if I had cash I would have bought last week.

 

Mark

10
Bear77
Added 5 years ago

There is a difference between paper losses and realised losses however @Stuey.  If the share price of one or all of your companies dropped, you have only lost money on paper.  It's only if you sell that you turn those losses into real (realised) losses.  Knowing that the sharemarket always recovers and goes higher over time, I would not sell good businesses at a loss unless I was doing it to move that cash into even better opportunities, or unless my investment thesis for that company had become severely impaired or busted.  That's what I mean about opportunity cost.  Some of the market's best days are during what looks to be a rout or a correction at the time - when the market turns on a dime and goes up.  I can't predict that timing accurately, so I don't try.  I'm all in, all of the time, pretty much, and it works out OK almost all of the time, if you give it time.  Of course, you have to be able to live with volatility to do that.  If you are going to cut and run when things start looking ugly, then high cash levels probably make a lot of sense.

13