Post by
Bertanderson on Jun 16, 2022 10:44pm
Comparison to 2000
I lived through the Dot.com period of 2000. Investors believed growth stocks would rebound but they didn't. In fact they continued to buy on the way down...Nortel, Rim, Sierra Wireless....they just continued to drop until they lost 90+ % of their value. In the case of Nortel, it went bankrupt. I know we are not talking about tech exactly with Tesla but in ways we are. This is a high tech car, with parts challenges, production interuption and a P/E 10 to 20 times higher than any other car maker. We're going into a recession (now likely more than ever) in 2023. You can always buy back when things improve which may be at least 1 or 2 years out. Inflation is at an all time high and fixed mortgage rates are already over 5% (twice from just a few months ago) and are likely heading to 7%+ after the last recent annoucement on the Fed's Central Bank rates. For some, that's more than 4 times the 1.5% rates they had in the past. Prepandemic levels for Tesla are around 80. Buying and holding from the 2000 level highs meant waiting 10, 15 or even 20 years to return to similar levels. Do you want to wait or can you even wait that long?
Comment by
foofadooo on Jun 17, 2022 8:14am
Have lived through many of these economic speed bumps ....it's closer to 1982 than the more recent ones ..... get ready for some tough times,......people losing their homes(much higher interest rates) , job losses, ..... a good job of the future might be selling Amway or vacuum cleaners...foof
Comment by
foofadooo on Jun 17, 2022 9:24am
A little history from the rabbit hole - wash, rinse and repeat...... https://www.nytimes.com/1982/05/01/business/alsands-project-is-canceled.html foof
Comment by
foofadooo on Jun 17, 2022 9:49am
A realistic viewpoint..... history will be controled by humans screaming when they suffer (blood on the streets)....https://www.youtube.com/watch?v=1nX0ogNHSt0 foof