RE: LeoThread 2025-11-07 21-52

[chartdan]

Well put

Comments

[chartdan]

There’s talk of froth in the market. Is there froth? Yes, but it’s concentrated in certain non‑profitable growth stocks trading on potential (for example, nuclear and quantum computing).

[chartdan]

1. The market typically corrects that froth on its own. Many of those names are 10–50% off their highs, yet the overall market has barely fallen because of sector rotation.

[chartdan]

1. Not everyone is in those stocks. They get attention—people watch, tweet, and trade them—but they don’t represent the entire market; only a small portion of participants hold them.

[chartdan]

1. A company like $NVDA doesn’t look like froth: it broke out of a yearlong consolidation in July, shows exceptional revenue growth for its size, and has real profits unlike many late‑90s darlings.

[chartdan]

1. If indexes feel frothy because a correction is desired: a) There was an about 20% correction earlier this year— a deeper 2–3 year, −50% bear market would indicate broader global issues. b) Focus on what the market is actually doing, not what it should do. c) Indexes are barely correcting because earnings are rising, the Fed is cutting rates, and seasonality is supportive; it’s unwise to fight the Fed.

[chartdan]

1. As Paul Tudor Jones said: adapt, evolve, compete, or die. The key is adaptation to the market environment. In a bear market, moving to cash can be appropriate; for now, the approach is to take advantage of an equity‑friendly environment rather than fight it.

[chartdan]

1. These points are offered as a viewpoint, not an invitation to argue. Follow what works; improvement and progress are what matter. 🙏