Key insights
- The author expresses concern that many market participants are engaging in short-term trading or speculative behavior rather than long-term investing, especially in a bull market. They observe a lack of due diligence on company fundamentals and valuations, suggesting that current enthusiasm for stocks like NVDA might be driven by momentum rather than a deep understanding of their long-term prospects. This sentiment-driven approach could pose risks when market conditions change.
For example, I see stocks all the time which are booming and well we are in a bull market so a lot of stuff is booming. People name stocks just because of an idea of for example ai and how they are going to need to need storage centers (just an example not correct or incorrect) so they buy assuming the price is not already fixed into the market. Yes maybe these stocks are perfect for swing trading, I am not a swing trader or momentum trader who holds for months and then sells but I feel like most people have these stocks or even sometimes etfs at such a high percentage of their portfolio’s like a core holding, holding it for long term and not really understanding the business/company and their financials and what they’re going after and how they’re priced and how well their filings look, etc. and I swear to god I feel like 70% or more of these subreddits not even just this one have all these stocks like that, for example NVDA is a great company/business, shows great numbers and future looks good, yes there are better buys and people don’t want to buy this but in the long term run, this is going to make you a lot of money. I’m talking like 5-10+ years by the way of people long term investing. I’m not going to call out stocks or etfs but i’ve seen a few which people are buying or ask about them and don’t do their due diligence on these company’s and don’t understand where they’re at. Everyone seems to be a genius in a bull market. No one is always going to agree on certain stocks but there’s so many resources out there that I believe can help you solidify a stock and whether it’s a good buy and even compare them to other stocks. I don’t know, maybe i’m dumb but most of these stocks, I feel as people do not care for where the company is going to be long term, just right now.