Street Analysis

The biggest lesson from the history is that we do not learn any lesson from it.

The year 2000 of dotcom mania and 2008 market crash in both housing as well as financial markets is not a distant memory.

Greed may, may have a limit, though, the foolishness does not. It is amply evident from the history of a mankind.

Nvidia (NVDA) hit $5 trillion market capitalization yesterday. The first ever company to achieve that valuation level. This number is greater than the GDP of the entire country – India, hosting the highest population, 1.5 billion people, on the earth.

While this happened…

Fiserv (FI) was down a whopping 45% erasing $30 billion in market cap yesterday.

Chipotle (CMG) is expected to be down today by 20% losing about $10 billion in market cap.

Meta (META) is expected to be down today by about 10% erasing about $200 billion market value.

Synopsis (SNPS) plunged by 36% on September 10 wiping out about $24 billion in a single day.

Similarly, it will not be long before the very same investors (trigger happy, fickle, not to say insane) sour on AI and all hot tech stocks. This is all while the ‘real’ economy suffers.

If someone thinks that it cannot happen to the market darlings, think again.

Nvidia (NVDA) itself was not immune to the mad rush as it was down 17% in a single day on January 27, 2025 wiping out about $600 billion market value. Can it happen again? Why not?

Meta (META) was down 26% on February 3, 2022 wiping out about $232 billion market value that day.

It has been a little over two years since the things have started getting out of control and it appears that we are in the last innings of the game, certainly not the beginning.

OpenAI is now eying an IPO with a trillion-dollar market cap sometime in 2026. It is another sign that we are closer to the end game.

All this while the federal government shutdown continues and air traffic delays continues to get worse. It finished 4 weeks today with no end in sight. It already is the second longest shutdown and will soon surpass the longest ever, 35 days long under the same presidential administration, next week.

Tale of two Americas continue as one part of America is flourishing like anything while the other one is going to be shut out soon of receiving food stamps on November 1. This is all for the ideological battle of healthcare, which is considered the basic right in the advanced countries.

Market pendulum has only turned more violent now with the advent of social media and AI as the information travels at the lightening speed. Hence, the insane moves in stock prices are not the rarity or inconceivable any longer, rather they are regular occurrences or a norm in many cases.

Countless other idiotic moves downward have been observed for many large cap and mega cap stocks in the last couple years, a relatively new phenomenon.

Very few safe havens are left out there for the cautious investors to hide and it is a perfect time to find one. Major market crash is not a remote possibility any longer, it is almost a given. The writing is on the wall.