Re:Apple reports Q3 results
by cblconfederate on Thursday July 30, 2020 @06:14PM
(#24003438)
There is only so many trillions to be invested in stocks (because, where else?), and they have already been invested. Stock markets have for so long had a totally irrational relationship with day-to-day news, that they probably won't move the needle much.
[ Parent
| on HN ]
First and foremost, the stock market is not the economy. Second, stocks are primarily traded on their expected future value, not current profits, hence why companies like Tesla have a price to earnings ratio that is absurd.
Tesla's stock price makes zero sense in any plausible scenario. I understand the narrative, but unless Tesla becomes the only car company on the planet, it can't be worth 10x Ford
Robin Hooders + solar energy + funds that buy Tesla after 4 x profit profitable quarters + China + ...
Still doesn't explain the crazy valuation
Market cap is set by marginal prices, so supply of uninvested capital isn't super relevant and might even increase volatility due to lower liquidity.
Re:Apple reports Q3 results
by redtexture on Friday July 31, 2020 @04:21AM
(#24006772)
The bond market is many times bigger. There is much more that could come to the stock market.