Today Market January 2022

Mr Market continues to get rid of growth stocks, many don’t have earnings. So far about 40-80% drawdowns from ATHs. During dotcom bust, such stocks decline by at least 90%, many disappear… will this happen similarly?

The strongest of the lot eg NET CRWD DDOG are now taken to the gutter too. No E, gutter. Not big enough E, gutter. Cash rich companies eg FANGMANT, would acquire these growth stocks for a song.


I think one element to look at will be their business model (money flow model) without getting into mathematics. Do these companies have have viable products, and are there customers who will buy these products?

In dotcom, they didn’t even have revenue. They created the new eyeballs metric.

The companies that are cash flow positive will be fine. Earnings is something accountants made up. Companies don’t go out of business over earnings. It’s cash flow that causes the issue.

Stocks related to e-commerce will struggle. Their growth rates are slowing compared to Covid revenue growth rates. People are selling everything though even the ones that aren’t impacted by a slowdown in e-commerce growth. It’s the same old ignorant sell everything approach.

What are you buying @marcus335 ?

Also what companies are cash flow positive? Ive been buying APPS.

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I bough MNDY and BILL today. I was adding to positions in both.

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I bought some MNDY too.
I don’t know about BILL. I don’t think I can spread myself thin across all these names.

Keep calm. Wait for the bottom?

Bottom is when Fed chickens out. Should avoid any companies that need capital injections or pay too high SBC. Meanwhile, watching TV serials.

Yep, I agree. I think that won’t happen until there’s a panic sell in the market. All the leverage needs to unwind imo. I think a 20-30% S&P correction might do it for the fed to panic…




how does FED chicken out? Print more?

For example, stop tapering or no rate hikes.

I am planning on buying MSFT on the way down. :slight_smile: I am not good at guessing the bottom, but I am sure it will go up eventually.

I think 2022 will be a losing year for all asset types - RE, tech stocks, crypto etc. Buy if one can, else at least HODL what one has, but dont sell

I am hearing word commodity supercyle a lot lately.

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Bottom or DCB?

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Any1 bold enough to declare that Jan 10 was the bottom for growth stocks?

Can we assume that all the deflationary things Fed can do are already out?
Tapering, rate hikes, balance sheet run off

I have deployed some cash :slight_smile: left with about 20% cash.

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I have no cash left except the ones that I can borrow. I am calling it bottom too.
Over the next few months I am seriously getting into cryptos also. For cryptos, this year is same as what 1994 was from internet point of view (the year Netscape went IPO).

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