“Everyone in a complex system has a slightly different interpretation. The more interpretations we gather, the easier it becomes to gain a sense of the whole.” - Margaret J. Wheatley
On Friday, the Nasdaq Composite and tech in general, collapsed.
At the same time, I have heard ones state that this is due to the fact that "Amazon (AMZN) has too high a P/E ratio" and "Netflix (NFLX) valuation is too high"? If you are new to valuations ... what does a P/E ratio not take into account? Is there another relationship at work? What is a 'good value'? What are variables that you have to consider when you look at valuations? Remember, that the markets are an incredibly complex system.
Let's talk about the above factors. So grab your cup of coffee as we discuss this in the following podcast ...
The article that accompanies this video can be found at: https://www.sharpetrade.com/investing-and-trading-in-the-stock-market-nasdaq-tech-takes-a-hit-remember-that-it-is-a-complex-system-and-nothing-is-static/
Visit us at: https://www.sharpetrade.com/
The Sharpe Report:https://www.sharpetrade.com/sharpereport/
Facebook Page: https://www.facebook.com/sharpetrade/
Twitter Page: https://twitter.com/SharpeTrade
Podcast Stream: http://sharpetrade.podbean.com/
And we can be found on itunes! itunes.apple.com/us/podcast/sharpe-trades-investing-trading/id949202293
Contact Us At: firstname.lastname@example.org
Music: RetroFutureNasty by Kevin MacLeod /Creative Commons "Attribution 3.0"
* * *
Note: Sharpe Trade does not grant this work for wide distribution beyond any single individual subscriber as this publication is protected by U.S.And International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced,stored, disseminated, transferred, or used, in any form or by any means except as permitted under the original subscription agreement or with prior written permission. The above statements should not be construed as an investment or trading recommendation. A variety of factors such as tax rates and commissions can always affect performance. Investing and Trading in the capital markets will affect an individuals tax implications and tax regulations differ from country to country. One needs to be aware of the tax implications and regulations of whatever country they reside in. The tax implications of the author of this newsletter may differ substantially from others. "Sharpe Trade" is not a registered investment advisor or advisory service. It does not tell or suggest which securities or currencies should be bought or sold. The analysts and employees or affiliates of Sharpe Trade, LLC may hold positions in the stocks, currencies or industries discussed here. There is a very high degree of risk involved in trading stocks, futures and forex. Sharpe Trade, LLC assumes no responsibility or liability for any trading or investment results. Facts, statement and charts posted to the company website may unintentionally include inaccuracies. All content posted is for educational purposes ONLY and independent advice should be sought from a professional to confirm validity and accuracy of any claim made. Such sets are not solicitations of any order to buy and sell. You should ask the firm with which you deal about the terms and conditions of the specific futures or options which you are trading and associated obligations (e.g., the circumstances under which you may become obligated to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise.) Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) maybe modified by the exchange or clearing house to reflect changes in the underlying interest. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment. THESE SERVICES ARE INSTRUCTIONAL ONLY AND DESIGNED TO FAMILIARIZE MEMBERS WITH HOW AND WHEN TRADES ARE TAKEN BY A PROFESSIONAL TRADER