RE:RE:RE:RE:Unwarranted Decline?Sellthedream2 wrote: Current valuation is extremely cheap but it's obvious the market is just gonna be all over the place for awhile until things settle.
torontojay- Makes me think that there's a possibility this will trade down to a market cap equal to cash on hand just because people/market are crazy..can you imagine? I'll back up the truck and wait a couple years for another big run eventually..
I wouldn't be surprised if it traded at cash value especially if Q3 is soft.
A little bit of history.
The tech bubble in 2000 witnessed the Nasdaq reach a peak of 5,132 on Mar 10,2000 and a trough price of 1,108 on October 10,2002. The length of the drawdown was 31 months during the dot com bubble and we're 11 months into this one. If Nasdaq and S&p500 begin to revise earnings estimates lower for 2023 then I'm afraid things are only getting started.
On the positive front, I think inflation has peaked and will probably be in the 4-6% range for 2023. However, the Fed funds rate is far behind and will probably have to reach 5% by mid next year to curtail inflation. If the economy avoids a recession, we are probably close to a market bottom. My personal opinion is we reach a bottom after the Fed funds rate has peaked and that's probably mid next year.
I think investors should be adding today but to keep a little money on the sidelines for next year as the possibility of a recession is high. Acuityads will not go bankrupt as they are sitting on $1.57 in cash to a share price of $2.13.