I recently decided to put some money in stocks instead of my 401k. At first glance it seems like the stocks might be over valued for what they are. For instance Tesla is 800 bucks a share but I don’t really see many of their cars on the road. I did pick up some oil stocks and made a little bit on them. Am I missing something?

Haven’t heard of any shorting as of late.

There are those who’ve had to cover their shorts lately.

My 2 cents is that we have run too far to fast. I'm a long term bull on the market and bought airlines and gaming stocks earlier this week but have tight sell stops or trailing stops on them. I have also sold or trimmed positions in software and tech.
The virus is still with us and the protests have changed consumer attitudes. The second quarter results shouldn't be that good which suggests a pull back from these levels.
Then there is the election. Biden and the dems are promising higher corporate and individual taxes which lowers consumer spending and less company profits which intern lowers stock prices. I will be totally in cash if it looks like Biden even has a chance of winning.

The markets seem a little optimistic to me but if I knew the future I'd quit going to work everyday.

I agree that another coronavirus lock down and/or Biden winning the election is going to negatively effect the market.

Quantitative Easing and Big Govie spending. $7 trillion since March alone. If the rona comes screaming back in the fall, Trump will just crank the printing presses back on at full speed... and it'll be way more than $7 trillion.

Trump will sell the nuclear arsenal off the North Koreans to fund and prop up the market before he lets it crash.

It will get back near 20 as soon as the new Covid spike from all the rioters rubbing titsndicks together in the streets and ANTIFA cell meetings. It's way over valued right now from simple euphoria over some of our rights being "given" back.

I'm still 1/3 in and 2/3 cash.

Interesting take.

Isn't the hope that the ones that a person owns get over-values very quickly and then sold?

It will be up to 30K before you know.

Recovery from fear mongering..
How far is your Judgement call. It was ever thus.


Musk just hit a big milestone, big props and is dumping Taxifornia (at least personally).

End of March I bought XOM, MGM, ALK, UAL, DNKN, CDAY, PINS, APHA, RWT, ET, RWT. Early may I bought F, SEAS, NCLH, and CGC. I sold Dunkin, Redwood trust, Ceridean and Pinterest yesterday at a hell of a profit, and dumped Canopy growth because I lost faith in it and it was up. Waiting to see what happens Monday, but looking for bargains isn't what it was 8 weeks ago. An opportunity like the pandemic coupled with the Oil war doesn't come along every day.

Still tons of good deals out there when you consider that the Fed has openly become the FDIC for the market. If things even think about going sideways between now and the election, Trump will pump so much funny money into the market, the DJI will be at 50k by November. Just look at the beatings he used to give poor Jerome anytime he thought he wasn't pumping QE hard enough when the economy was on a tear! Imagine what he'll do if the market starts to tank with only months before the election.

And ain't no way Biden gets elected. That's just nonsense.

Wished I had your conviction concerning the elections. If we lose the senate we’re fugged just as badly, almost.

I have no clue, but I think the value of the dollar has decreased with the covid checks and unemployment scams. Trillions scammed come out of dollar value.
So I think President Trump will win, and the stock market will be at 30K before next spring.
So if it is at DJIA is 30K come next march, is it worth the 30K last Christmas? I don't think so.
Right now I am 6% off my Jan 2020 portfolio. I have about 3/4 in SP100, the rest is 3.2% guaranteed.
I am optimistic that my stock will regain value (buying power) in 2 years under DJT. That would be a huge accomplishment.
I have early retirement on the radar, so that is as optimistic as I can dream.
I hope that the US can shake China, and the snake oil dems.

You worry too much. Sure, inflation is clearly taking hold but fortunately it's contained within the stock market. So instead of paying that $20 for a loaf of bread, you're paying $20 for $1 stock.

Now, when that money leaks out into the real economy, well... that'll be a nasty problem. But fortunately, that's a problem for future generations to clean up and deal with, not us.

Inflation isn’t a problem for any G 7 Nation and wont be for a long while.

A dollar devaluation helps our exports.

The present cause of some higher prices is due to disruptions in the food supply chains.

Jmo

Shaking my head....

I base a LOT of my financial decisions on how it will effect what I can do for/leave for, my children. I sure as hell don't want to leave them with any burdens that were of my own making. I'll gladly take the pain so that they might not have to.

Your pain ain’t gonna change a thing as it concerns worldwide debt and international finance.

Nice thoughts, though.

I agree with fox trotter.

I am blessed to have regained in this market......but if the dems win the election it is gonna get harder to figure out what to do. Even a blind man knows when the sun is shining.

Dems win in November it'll be like someone turned off a light switch. Then we'll hear for 4 years of how Trump trashed the economy.

Trump gets a second term and doesn't have to worry about reelection he'll be free to finish what he started and hopefully be able to set back the globalist 20 years.

Not unless we get both houses in this election. We might have Trump and neither house. Stalemate, completely

Stocks are far over-valued right now, especially with high unemployment that won't correct for 2-5 years, Covid still around and maybe on the increase again, consumer confidence shattered when we quit doling out $600/month to unemployed, coming defaults and foreclosures, travel and leisure down by 1/2, and a damaged supply chain.

All this can and will be resolved over time, but the consumer psyche has been altered.

Not if we lose the Senate. Game over.