FormerXBC Inc XEBEQ

RE:RE:Market is comical

[ferret_ca]

you are wrong, the market is in the process of rerating it's multiples lower, just as it rerated it's multiples higher as we came down to very low rates and stayed there for a long time.  for years when rates were higher utilities basically traded at 10x multiples for what seemed like eternity then rates came way down to basically  to 0 and their multiples slowly graduated up to around 20x (talking mostly p/e multiples here for utilities, other metrics are used in may other sectors but same idea) . things usually tend to come down much faster than they go up for the most part.

imho in this type of market you need to sell or trim on any big up days and basically stay away from most small caps for a while, buying on days like today can be catching a falling knife on the overall market. no one knows how high rates will go or how long they'll stay there just like they didn't know how long inflation would last or how sticky it'd be.

we're about to see our housing market take a significant tumble which will trigger some forced selling which will spill a bit into the market on top of margin calls imho, there will be some incredible opportunities down the road, make sure you have some cash on the sidelines, all jmo.

cheers ferret