Proper Valuations for Nasdaq 100 9 10 2021
- Strategeriest
- Sep 10, 2021
- 2 min read
Updated: Sep 11, 2021
Good afternoon,
Please note the below is not investment advice, it is academic research and pontificating on hypotheses regarding this week’s market activity and the attached positions of the Long Short Portfolio. The market this week was a shootout!
In my opinion, it looks like the market normalized a bit this week. Aside from Gamestop refusing to admit on their earnings call that they are building warehouses for Xi Jinping’s silver to sell Taiwan, China bailing out a country stripping women of their rights with oil prices, a terrorist trying to take away the air force servicemen’s rights to bear arms, and another potential terrorist attack on a Navy flight deck, there were some positive trends set. One of those trends is that the market reminded the Fed that interest rates need to go up. They have a dual mandate, employment, and inflation. The below paragraph is also my opinion and pontification.
The market is overpriced by about thirty five percent. This is caused by inflation. Rates need to be raised to combat this inflation. I don’t know what is so hard to understand about 1.75% on the ten-year. In the current market environment, percentages of investor’s paychecks are being dumped into shares of companies that will never return their capital. This is communism, it is like people are voting themselves in slavery. They are paying companies to do a poor job and starving profitable companies of capital that could be used to build a productive economy to increase money velocity. It is like 100,000 Austrian economists returned home after World War One and intentionally crashed the market to get a new deal. Or the person that controlled the offbook leverage of a major bank was forced out, put into a mental institution for being incompetent to stand trial for a crime they didn't commit, and replaced by uneducated undercover cops.
Of course, neither of these things could happen unless Hoover actually dammed up America’s breadbasket, or the bank employee’s dad beat up Whitey Bulger’s bartender or something. He was the wire. Anyway, that is not important. It is pure speculation and fantasy. What is important, is that the market started to return to normal this week. Let’s hope this continues so interest rates can go up to preserve the capital of holders of the U.S. Dollars and financial securities denominated in U.S. Dollars. Failing to do this will destroy the pension funds and insurance company floats of this country, which are segregated legal entities with separate liabilities from the companies that fund them.
Enjoy the Weekend!
Warmest Regards,
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