Why it's time to focus on healthcare stocks, not weight loss miracles

its can be dangerous to compare situations that are tenuous at best, but that wont stop me here!, since i have been watching the US market closely there are quite a few examples of wide fluctuations in stocks that in hindsight appear ridiculous or that stretch market credibility,

for eg, (these are massive mkt cap stocks) (SP changes)

NVDA--$326--oh no its business is disintegrating due to bitcoin --(down to) $120---wait now theres AI --(back up to) $470

GOOGL--$150---GOOGL knows nothing about AI--$87---wait maybe they do $140

META--$326--wait AAPl changes, metaverse spend, tik tok--$90----decides to cut costs --$324

these moves were over 18 months, and there are quite a few similar instances.

the point is the SP and mkt cap moves were huge, and clearly overreactions, that gives me some confidence that, at times, the market goes into lala land.....i blame momentum trading

That’s the flip side. Some of the most stomach-churning buys also turn out to be the best, but there are at least twice as many examples of companies that continue to be in protracted downtrends leading into some sort of long stupor or terminal decline. Judging the quality and prospects of a business is paramount in that scenario - is the reason behind the price action temporary or permanent (or cyclical v/s structural, as Strawman likes to put it)?

I think it's in for a tough time with so many hedge funds probably doing a pairs trade - long Nova Nordisk and Eli Lilly and short others. When they over there'll be snapback but these bubbles can go for months.

No doubt it's going to get worse before it gets better.

There's plenty of hype and excitement about GLP1 agonists, a lot of which is justified.

The error that Mr Market is making here is assuming the outcomes are mutually exclusive, i.e., that success for GLP1 agonists = failure for Resmed.

My view is that they aren't mutually exclusive, and I suspect Resmed will show in good time that it's sales won't be meaningfully affected at all.