Posted on 04/17/2021 1:03:56 PM PDT by SeekAndFind
Is that as bad as Santa sitting on a throne of lies?
Lots of pins hovering over many many bubbles........
ok so the SHTF. The question is when. The experts know as much as you and me.
Someday the author will be right once, that is still far worse than a broken clock
Fear porn to sell a book.
Do we convert our money to cash? What if the bubble bursts and they don’t have it. I do know this-it plays into the hands of he communists , especially those at home.
The money was free so nobody cares.
They’re playing Monopoly with Monopoly Money.
“a small deli in rural New Jersey can literally be valued at more than 100 million dollars”
Does this author not understand free markets, or are they deliberately misleading? Things are worth what someone is willing to pay for them.
It seems this deli has shares that are owned by the owner and his family. One of them transfered a handful at $9 a share to someone else.
That doesn’t mean anyone is willing to pay $100 million for all of them.
As with most lightly traded shares, the stock value doesn’t have much to do with the value of the firm.
Can someone explain to me how a company like “Your Hometown Deli” even gets listed on a stock exchange? Never in my life could I imagine mom and pops being listed. What’s to stop me from doing this, selling and making a killing?
My IRA earned 10K last month but I might put it all in cash with this crazy run up.
animal spirits can lead to bubbles:
euphoria + decreased risk aversion + herd mentality + excessive optimism = irrational exuberance
“This bubble will inevitably pop, and those that did not sell at the top of the market will be kicking themselve”
Trading halted.
Bailout
Government pensions. Union pensions retirements
Generally yes....things are worth what someone will pay. But not always...that’s the point of the story. If you buy controlling interest in this company / deli for $50,000,100, then what? Liquidate it - building, land equipment, stock on the shelves, and any other assets, etc., subtract liabilities......do you think it’s worth $50-mil? I doubt it. Price is what you pay, value is what you get. It’s only truly worth what it’s worth.
“The Paulsboro, New Jersey-based Your Hometown Deli is the sole location for Hometown International, which has an eye-popping market value despite totaling $35,748 in sales in the last two years combined, according to securities filings.”
Sadly the IRS is now going to pay these guys a visit.
Nobody can keep a deli open on $18k in sales per year. It’s easily 10X that, minimum.
To boot, to be on the NYSE, you have to follow a bunch of accounting rules.
I suspect deliberate fraud here.
Intrinsic value is the coin of the realm.
Why do you think Bill Gates is the largest owner of farmland in the US?
A few extreme example misses the point. Is the stock market overvalued? Based on historical P/E ratios - yes. However - adjusted for ZIRP and Federal reserve pumping trillions into the system and the federal government pumping trillions...it’s not overvalued at all. Same with real estate - and unlikely last time the average credit score is close to 800 and most homes are being bought with all cash or 30-40% down. In a normal market, this author would be right, but thanks to the actions of the Fed Gov and Fed Res, we’re looking at real asset elevated inflation right now. Yes, there will be bubbles like Dogecoin and the deli mentioned, but most investors are not investing in them - but Apple, Microsoft, Walmart, Amazon, P&G, Hilton, cash flowing real estate, etc.
Today, Coinbase has 56 million registered users and processes a trading volume of $335 billion per quarter.
Not small potatoes
Hi.
I just don’t know...
Savings accounts? No.
CDs? No.
Bonds, maybe?
Real estate at 3% mort rates, maybe?
Gold, maybe?
Commodities, maybe?
See, I don’t know anything either.
5.56mm
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.