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 Bubble?, Bubble?

Elon is now the richest. Does anyone think that this is a speculative bubble and it is going to burst soon? When it pops, will it affect our KLCI despite KLCI has no tech? Reason: There must exists a lot of other speculative assets apart from Tesla
 
A Yes, bubble bursting soon, will affect all markets due to sentiment shift, but opportunity to buy the dip for value stocks [ 35 ] ** [52.24%]
B Yes, bubble bursting soon, but will have no impact on KLCI [ 14 ] ** [20.90%]
C No, Tesla, btc, eth, doge, mars are worth more than that [ 18 ] ** [26.87%]
Total Votes: 67
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statikinetic
post Jan 8 2021, 01:56 PM

BaneCat
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Joined: Jan 2010
TESLA comes up a lot.
That is because people fundamentally have problems agreeing what company Tesla is.

If you think Tesla is a car company and is judged as one, then it is a massive bubble.
If you think Tesla is a disruptor that will dominate the auto industry once the shift to electric is done, then it is fairly priced.
It's all in how you do your calculations for Tesla and what your base comparison model is.

KLSE? Definitely some discrepency between the highs of the stock market and the dragging economy. Still, it may not be a bubble that is going to burst. There is also the chance that the economy will grow and recover to reach the heights of the bubble, which means no crash correction happens.

I'm more of a bear so I'm looking the other way.

statikinetic
post Jan 8 2021, 02:12 PM

BaneCat
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2,940 posts

Joined: Jan 2010
QUOTE(HereToLearn @ Jan 8 2021, 02:03 PM)
To me KLCI componetes are not expensive. I am just worried that Tesla, bitcoin crashing will have spill over effect. Last time during the dot com bubble, nasdaq dropped from 5000 to 1200 (about 75%)
S&P drop from 1500 to 800 (about 47%)

KLCI dropped from 1000 to 500 (about 50%)

Now with Tesla in S&P index, when it crashes, S&P will drop real hard.
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If the risk is only with Tesla, isn't the blast radius fairly contained for a single stock?
The dot com buble was huge because it wasn't just a stock, it was an entire industry propped up on sky high PE ratings because nobody knew how to price these new tech companies.

Unless, of course you are referring to the FAANG stocks being in a massive bubble too.
statikinetic
post Jan 8 2021, 02:24 PM

BaneCat
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Senior Member
2,940 posts

Joined: Jan 2010
QUOTE(HereToLearn @ Jan 8 2021, 02:20 PM)
Tesla and bitcoin are just 2 more obvious cases.

I am also skeptical on shopify, zoom.

Telsa's blast radius will be small, but the chain reaction that it might trigger is hard to imagine.
*
I have no better way to say that I share your viewpoint other than saying I am sitting on net cash.
2021 will be my year of waiting. Opportunity cost, I have accepted.

 

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