I am troubled by the extremely high prices for stocks. Like it kept me up last night.
My lifestyle consists in not thinking at all about things much, then sometimes something snags a synapse in my brain and I can’t stop thinking about it until I have worked out an answer.
Why are stock prices spiraling upwards?
Back in November I started following the stock market because, we all need hobbies. I made an excel spreadsheet with stocks and then updated it. (yeah I know there’s software you can use but it’s my hobby, okay? You can buy sweaters pre-made at the store but some of us like to knit.*) by january, I noted with some chagrin that literally all the stocks I had considered buying, had increased. By like 20, 30, 50 percent.
At first I thought, man, maybe I’m like a financial genius. But I quickly dismissed that idea because s–, I can barely divide 100 by 20. I am, as I have stated before, semi-literate at best, and if there’s some kind of word for being functionally illiterate at numbers, I am that.
I wrote down those stocks just off the top of my head. It wasn’t based in analyzing sales or profits or anything. It was literally just me thinking, “maybe people are going to want to do X, let’s find the company that does X or supplies X, and watch their stock.”
I pored over the quarterly earnings conference call transcripts, SEC filings, , reading news stories that mention the company, read the SEC filings, checked out their glassdoor reviews because i have this theory that happy employees = a well-managed company…and literally nothing in a numerical sense made sense for the incredibly high stock prices.
How can a company’s stock go up so much more than it is currently earning, or is projected to earn?
And yet the one company I thought was doing actually pretty fantastic, Company Y, the price is stagnant. Hasn’t gone anywhere.
I’m a contrarian, it’s my unfortunate nature. So i bought shares of Company Y.
*not me. Handicrafts hold no appeal. Back in the day women were expected to knit and sew and etc. tedious and oppressive