RiapRoy schreef op 19 april 2020 14:12:
In deze comment onder het artikel kan ik me wel vinden. Fwiw
'The problem is that far too many hedge funds have shorted the markets..and they have been waiting for a large dip to make money on these and get back in the market...now their bets seem to have gone wrong.
Their short hedges are losing money, and they missed the boat to get in.
Now you may cherry pick some stocks to question the credibility of the overall trend ( and I don't doubt that some, and I reiterate "some" stocks may be overpriced according to some value investors)... OR you may want to rather ask WHY the market trend and sentiment continued to be positive (in-spite of record layoffs, demand invisibility and uncertainty).
And the reason I think is exactly because the hedge funds like the one above who are sitting on a boat load of cash to get back in .. and while they are sitting out waiting for the drop, FED (and some institutional funds and retail investors to some extent) is going to continue to support markets and markets will continue to go up. At some time in near future, there will be a FOMO syndrome as these hedge funds' clients will ask these managers on putting their money to work, while the market has gone up by more than 20% from the bottom reached on Mar 23.
For long term investors and those who know that it is a fool's game to exactly predict bottoms (as you can't exactly predict tops) - it is a smart strategy to start buying on the dips and accumulating. I don't think there will be another bottom, but then I will be a fool to promise you that!'