(03-25-2021, 08:21 AM)kblake Wrote: NKE is just one of many stocks that will get punished this year. Everything is over valued. Stocks that were left for dead are up 100, 200 percent off the lows. You have companies that aren't making a dime make new highs. I can see 2021 being one of the worst in the market in some time. All these young investors believe buy everything and become a millionaire over night. Those people are in for a rude awakening. Buying a CD and keeping cash may be the best investment this year lol
I'm looking at buying puts in certain stocks. In no way am I a bear. I just don't see this buy everything mentality working forever lol.
Statistically, the major indices are likely to have double-digit gains this year (16-20%), if past performance in the last several 2nd years of a bull market (going back 40years) hold any predictive power. It's usually the third year of a bull that sees a slight pullback (less than 10%). Doesn't mean there won't be pullbacks, volatility, and sector rotations along the way.
I don't buy the 10yr yield story. Inflation just isn't a thing right now with labor force participation sitting at half of its pre-pandemic level. Even with the current covid spike in European countries, 2021 is going to be the year of reopening and substantially increased economic activity, with most companies in most sectors reporting monster growth/comps at some point during the year.
I suspect in a year we will look back on March 2021 as equivalent to the great crash of December, 2018. Essentially, a non-event.