How to deal with bubble stocks

Today’s Daily Byte

Today, we saw portfolios not performing in line with the market. We’ll delve into this shortly. The main topic of discussion today is the rate cut narrative and why it might be a trap.

Let’s discuss why one should not be fooled by the continuous talk of rate cuts and their rapidly changing nature, but that will come in the second half of the video.

Reading Time : 4 Minutes

How to deal with bubble stocks

In the world of stocks, there are often dramatic rises and falls.

A good example is Cisco, a major player during the dot-com bubble in 1999-2000. Cisco’s stock rose an astounding 14,000%, only to collapse and lose most of those gains. This cycle of boom and bust is not unique to Cisco but is a pattern seen in many high-flying stocks.

Nvidia is the latest stock to experience a meteoric rise. . . . . .

Reading Time : 4 Minutes

Perceptions cloud our decisions

It’s fascinating to compare the stock performance of Domino’s Pizza and Google over the past 20 years. Both companies have achieved remarkable returns of over 7,000%. Most people might think that a tech giant like Google would outperform a pizza delivery business.

However, the reality is that both have delivered similar returns. This shows that market perception can be very different from actual performance. Investors in Domino’s Pizza have made as much money as those in Google, which is truly remarkable. . . . . .

Reading Time : 3 Minutes