from value took place right around the end of 2019 and growth stocks have made enormous gains. For ex, AYX rallied from mid 80's to close $158 on strong earnings. I think some of this is due to earnings, some are due to rotation back and some are fueled by Corona virus.At some point, I expect this will reverse and growth may have another melt-down. For now, anyone who is invested in growth are genius.
Don't forget that the stock market made a big dip at the end of 2018. Dec 24 was the bottom.Hence, a big chunk of the "gain" last year was recovery from the big dip. People had all sorts of concerns about earnings. The tax cut boost was spent. Earnings were expected to tank or at least be flat. Seems like none of that happened.Of course value stocks also took the dip and could have done fine but tech stocks had attractive stories once earnings started coming in.Once again we have nay sayers running around. Prices have risen much faster than earnings. PEs are unusually high. There has to be a correction and a return to sanity.But once again, that big 2018 dip is in all those numbers.Talking heads are worthless. Stay the course while it works. Switch in reaction to news, not speculation from talking heads.
I am not talking about 2018, but from Dec 2019. There are stocks that are trading at 20, 30 times of sales not Earnings. Right now, you cannot short them but there is going to be a time, they are all ripe for shorting. For now, keeping an eye and staying on the sidelines on many names and participating on some names. :)
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