The Portnoy Top

This piece is written by a third party because we think highly of the author and their perspective.


Want to continue reading this and the other 1,500+ essays you won't find anywhere else?




Already a subscriber? log in here

To learn more about Epsilon Theory and be notified when we release new content sign up here. You’ll receive an email every week and your information will never be shared with anyone else.

Comments

  1. Pride comes before the fall.

  2. As soon as I read someone say “fundamentals are out the window” I’m done. That’s the point at which an author admits, knowingly or not, that they’re trapped in their own narratives. Peter is a smart guy and I respect him, but I’m going to let you in on a little secret: fundamentals are only fundamental until they aren’t anymore. Anyone who walked into 2020 with a view that the high P/E was a sign to avoid equities would have missed a 43% run by AMZN (P/E 126x), 24% by MSFT (P/E 32x), 20% for AAPL (P/E 27x), 116% for VEEV (P/E 116x), do I need to keep going? Mixing the world of day traders (and the entertainment trading of the DDTG juggernaut) with investors is not only a mistake, it’s an entire misreading of the current climate. There is a MASSIVE difference between Retail and retail. One of them is trading meme stocks while scouring r/wallstreetbets, the other is the actual mom-and-pop investors that people like me manage every day. Don’t confuse the two. Don’t equate the two. Don’t even put the two in the same building, let alone in the same room. These are distinct entities. That one of them has gotten more attention than the other is the entire point of the game.

  3. I agree with you and we’re in the same business, I hope and believe that our kind of retail can survive and even thrive on the inevitable day when the day traders get wiped out. In a way I look forward to it even though I’m sure no one will be unscathed.

Continue the discussion at the Epsilon Theory Forum

Participants

Avatar for lpusateri Avatar for Desperate_Yuppie Avatar for pcecchini Avatar for rwgood

The Latest From Epsilon Theory

DISCLOSURES

This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.

Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.