The SMI is at 10,000, the Dow Jones at 26,000 and it will soon reach 50,000. The market is set to rise permanently and indefinitely. Interest rates will never be increased again because inflation has disappeared. Thanks to these accommodative monetary policies, all companies, even poorly managed ones, will be able to make juicy profits. Uberization will extend to a multitude of new markets, biotechnology will make cancer, obesity, diabetes and Alzheimer's disease disappear. Blockchain technology will revolutionize our economies. Artificial intelligence and robotization will allow us to get rid of tedious and monotonous work, while creating new wealth. 3D printing will revolutionize the world of production and virtual reality will open new horizons in terms of leisure.
Thanks to driverless cars, we will be able to get drunk without the risk of accidents and without fear of having our licenses revoked. Thanks to advances in medicine, the repercussions of excessive alcohol consumption will no longer be a problem, in the short or long term. Hangovers and liver cirrhosis will have disappeared. The party will be permanent and the bars will be full all the time, like us. We will be able to smoke 3 packs a day and our lungs will still be immaculate. Despite all this debauchery, the next day, we will be able to work in great shape and produce even more wealth. What a blast!
Trump will eradicate immigration. Mexicans will be forced to stay home and they will be able to invest all their energy in a smarter way: producing drugs. Thanks to this, prices will drop and we will be able to consume them every day, starting at lunch, with our nootropics and super-longevity vitamins. Under perfusion of coke and other synthetic products, our brain will work even harder, encouraging creativity and problem solving. A multitude of geniuses and Nobel Prize winners will thus be born, initiating new discoveries and major creations for humanity, including a huge air conditioner posted on the moon and spraying polar air towards the earth, thereby solving global warming.
Companies will trade at 100x earnings and still be considered cheap. Because this time it's different.
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Argh, damn, I didn't know that all the evils of the earth were going to be solved and that the shares were going to go up to the sky! It's a shame, I'm just in the process of liquidating some positions to be able to pay the notary, taxes, movers, etc. 🙂
What a bummer! Take out a consumer loan, get into debt and invest it all in Netflix, Tesla and bitcoin 😉
Sorry for this teasing but your message – to be taken with a pinch of salt I imagine – stems (perhaps?) from this passage: "The portfolio's performance in CHF painfully amounts to 3.33% during this first half of the year. It is therefore completely behind the market (SPI +19.5%, during the same period)" but it echoes some of my questions on the financial part.
Personally, I am increasingly uncomfortable with the valuation multiples concerning my growth stocks, with low rates influencing DCFs and peer valuations propelling these high-visibility stocks to the top. At the same time, being in the capitalization phase and only present on European markets (France in particular), it is difficult to sell. The last stocks sold (Sartorius Stedim Biotech or Robertet for example) have continued to soar. I still have a cash pocket of 12% after taking profits.
In fact, I sometimes feel like I'm speeding along at 150 km/h on a mountain road in the middle of fog with various dangers lurking at every turn (the Trump turn, the Central Banks turn, the demanding valuation levels turn, the end of the cycle or not turn, the debt turn, etc.) fearing going off the road at any moment, but hey, market timing is illusory, it seems... so I'm largely keeping my current positions and am always actively looking for new opportunities without stressing myself out either.
No worries, this is not a joke. Indeed, the two articles are of course linked and obviously it was tongue-in-cheek. Except, perhaps, for the air conditioner on the moon?
I like your analogy of the mountain road in the fog at 150 km/h. 🙂
Good idea this giant air conditioner on the Moon, I don't know if it will solve all the climate problems on its own but if you could direct it towards Europe next week by making it run at full speed, that would be nice 😉
To cool off, it is also possible to go directly to the Moon. Elon Musk offers the race for a few dollars...