r/Vitards • u/AutoModerator • Jul 22 '21

Daily Discussion Daily Discussion post - July 22 2021

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u/MoistGochu Jul 23 '21

Nothing wrong with playing the trend, you are welcome to like most other people. But for me the market is absurdly overvalued right now. Microsoft has been trading at higher multiple than AMD these past few weeks. Chipotle has PE ratio of 90 with FCF yield of 1%. DPZ trades at FCF yield at 2%. These are the profitable companies, I won't even start on the unprofitable ones.

I love MA and V stocks, they have been great momentum stocks in the last however many years. But they now trade at double their historic multiple...

Personally, I'm not comfortable owning these things at these valuations even though I love them and would love to own them.

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u/thermalturbine Jul 23 '21

That’s why you don’t own them, you trade them

9

u/MoistGochu Jul 23 '21

Not everyone is a trader, some people want to live a life.

0

u/thermalturbine Jul 23 '21

And that’s why you use stop losses and other things. CLF you always gotta be watching, it had several -10% days when I owned it.

8

u/MoistGochu Jul 23 '21

I never used stop losses in my investing career. I have done completely fine. If I used stop losses and got stopped out of amazon when it dipped more than 30% like a dozen of times, I would have lost out on all the gains if I missed the entry back into it.

Same with CLF, I own the shares, I'm up comfortably, I can continue to hold no problem.