Pitfalls of an investor
Many people are mistaken, mistakenly believing that stocks, unlike cryptocurrencies, are investments in real business, that is, the most FUNDAMENTAL or a fundamental analysis of financial and production indicators that is understandable to all of us.
If you look at the earnings of stocks relative to the well-being of companies, it becomes clear that the stock market is a bubble.
Recall the principle: the price-earnings ratio (p/e ratio). Tesla, for example, now has more than 100, Apple has more than 24.
This means that the investor "fundamentally" should receive his money invested in Tesla in 100 years, and in Apple in 24 years. Normal in your opinion?
People invest ephemeral, not fundamentally. And don't rely on Buffett's public portfolio. This theory is already quite for backward inhabitants.
Most public major transactions are made from an ideological point of view. For control, not money.
Now let's add 2 more points to the "fundamental":
First: Now there is more “financial wealth” (money, stocks, debts) than there is in the world of real wealth.
This fact leads directly to negative returns relative to purchasing power. People will just buy less.
And second: Let's add a strong rise in unemployment and uncontrolled inflation. Which will inevitably lead to an increase in key rates.
This means businesses will have to pay more. And people will buy less.
And of course, let's not forget that 30% of the largest companies use half of their income to repay loans, and another 20% of companies generally close the year in a negative balance.
But oddly enough, their shares are rising in price. How do you like this fundamental?
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