9/19/2014 – A mixed day with the Dow Jones up 14 points (+0.08%) and the Nasdaq down 14 points (-0.30%).
I have two things for you to ponder over the weekend.
Alibaba worth more than $200B… just what is it?
I think when the history books are written this massive Alibaba (BABA) IPO might be viewed as the “Ringing of the Proverbial Bell” for this bull market cycle. And do I really need to talk about its valuation? As I write this, the company is selling at 24 times revenue. For god’s sake……Tesla (TSLA) which is another highly speculative stock is selling at just 13 times revenue. Amazon, who most closely resembles Alibaba, is selling at just 1.9 Revenue. In other words, the valuation of Alibaba is 12 higher than Amazon and twice as high as Tesla. If this doesn’t scream out “MASSIVE STOCK MARKET BUBBLE/TOP” to you, well, you deserve to lose a lot of money.
‘Bubble in everything, everywhere’: Marc Faber
We live in the world where a 25 year old financial commentator with a nice haircut and a bachelors degree in marketing can make fun of well researched investors like Bill Fleckenstein for, get this, missing the latest rally of 2%. Over the last few months Marc Faber received the same treatment on at least two financial network. The question you have to ask yourself is this. Who would you rather listen to
- Openly bearish money managers like Marc Faber, Bill Fleckenstein, Carl Icahn, George Soros -OR-.
- Financial commentators who have no idea what they are talking about and/or who most likely have most of their money “well diversified” though at least 5 “well balanced” mutual funds.
The choice, as always, is yours.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. September 19th, 2014 InvestWithAlex.com
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