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Azelover on 26 November 2017
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Nautilus said:
Azelover said:

This has happened before, but Nintendo isn't the only one over-valued because of speculation.

A LOT of companies are. Apple will cross the trillion dollar mark soon, and it is completely speculatory. In fact, all markets are ove-valued.

The GDP of all contries combined is slightly below 90 trillion, but the derivatives are at over 1.2 quadrillion! This money is ridiculous, a total bubble, and make no mistake it's gonna pop. Nintendo, Apple, Google, the stocks of all these companies are gonna plummet and the financial system will reset. So no matter how undervalued you think a company is, it will still ineviatably drop.

Well duh.Not one company is going to eternally improve and be ever more valuable.Eventually it/they will screw up or simply not inovate enough and the market will deem it as not as valuable as it was before.But that is the nature of the market, there is nothing really wrong with that.

Interest rates are at zero percent, do you know what that means? The market can't even be corrected by 3.65 %, it would meltdown. So the Central banks keep buying stocks and lending money at an accelerated rate. This can't keep going for long. In fact in the past six months the market almost crashed a few times, and the Fed went in and saved it at the end of the day. The big stockholders are selling their portfolio, there is a lot more selling than buying. This always happens before a downturn.

The Central banks are buying stocks by the trillions, and companies themselves are buying their own stocks in huge quantities. This is keeping the market going along with infusion of money, and hides the fact many good investors are bailing out. Very soon something is gonna happen. It's clear as day.