Submitted by QTR's Fringe Finance
Last week, while the market was red and I was jogging, I flipped on the CNBC app at about 12:30 in the afternoon to hear how sentiment had changed from the week prior.
I don’t find myself watching a lot of CNBC nowadays, but I thought it would be an interesting experiment: tune in at the same time almost a week after the last time I had tuned in—on yet another day where the market was red.
The last time I had tuned into CNBC, I was running through a certain stretch of the park and listening to David Faber argue with one analyst after the next who argued that names like Nvidia and Microsoft were "cheap" at the nearly 30x to 40x earnings that they still traded at, despite a 5-10% pullback in markets.
When I flipped on the network this go round, I happened to be running in the same section of park at the same time. And I swear, hand to God, the first thing I heard was a male voice that sounded suspiciously like the one from a week prior talking about buying Microsoft — again. When he was pressed by the host - I couldn't tell if it was Scott Wapner or David Faber this time - the guest said, "I bought more today just like I did last week." It was incredible. It sounded like it was the same guest, buying the same stock a week later using the same reasoning.
I'll give credit to whoever the CNBC host was, though, because they then asked the guy, almost exasperated by his consistency, "So, then, what do you see as a worst case scenario for downside in the market from here?"
The host was essentially trying to make the point that stocks can always go lower and you could suffer for it by just buying every single 5% or 10% pull back that there is regardless of valuation.
Stunningly, the guest responded that another 10% move lower in the market would be what he called an absolute worst case scenario.
That would put the QQQ at about $410-$420 in this chart - a level that was still an all time high less than 18 months ago. Zero consideration of the fact that valuations would still be elevated and that the NASDAQ traded at almost 40% lower just two short years ago!
Heading into April and my 25 Stocks I’m Watching for 2025 list (part 1 here and part 2 here) continue to outperform the S&P by about 6.8%. Here's my details on the rest of what I'm watching in markets this month.
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