Great note. And true broadly beyond your examples. This market rally has been far different than the 2020/2021 rally. There are a few chitcos that have rallied, but not like 2020/2021. There are pockets (AI) of exuberance, but good luck shorting that story. Finding decent quality companies trading cheap has become tough. And finding shor…
Great note. And true broadly beyond your examples. This market rally has been far different than the 2020/2021 rally. There are a few chitcos that have rallied, but not like 2020/2021. There are pockets (AI) of exuberance, but good luck shorting that story. Finding decent quality companies trading cheap has become tough. And finding shorts has also become tough. The valuations in this rally are far more rational, if slightly rich. My sense is the entire mkt is 15-20% rich, but if every stock is 15-20% rich, that is a tough environment. I am focusing on finding event-driven and foreign names because the medium-term long/short environment is tough.
agree...except for the entire market being 15-20% rich...there are plenty of decent biz selling at least reasonable if not cheap valuations...but that requires investing where the momentum/passive crowd isn't...
Great note. And true broadly beyond your examples. This market rally has been far different than the 2020/2021 rally. There are a few chitcos that have rallied, but not like 2020/2021. There are pockets (AI) of exuberance, but good luck shorting that story. Finding decent quality companies trading cheap has become tough. And finding shorts has also become tough. The valuations in this rally are far more rational, if slightly rich. My sense is the entire mkt is 15-20% rich, but if every stock is 15-20% rich, that is a tough environment. I am focusing on finding event-driven and foreign names because the medium-term long/short environment is tough.
agree...except for the entire market being 15-20% rich...there are plenty of decent biz selling at least reasonable if not cheap valuations...but that requires investing where the momentum/passive crowd isn't...