Here at Srilanka Share Market, we’re on a mission to provide first hand information to those who are willing to invest or trade in Colombo Stock Exchange. Also heading into share market could be scary, but we SriLanka Share Market turn that fear into fun by providing educational, research materials from respectable sources.
Here are some things you've probably been hearing during the current bull market from a wide range of investors including some tongue-in-cheek translations about what they really mean.
On Fair Value:
Bears: We think the market’s fair value is much lower than current levels. (Translation: We have to say it’s way lower than the level where we called for a crash four years ago.)
Bulls: We think the market is fairly valued at current levels. (Translation: I have no idea what the fair value of the market is and neither does anyone else.)
Investment Strategists: If earnings grow at a consistent rate forever into the future and you slap a P/E ratio of 16x on the market we think stocks will rise 8-10% this year. (Translation: Stocks are up 3 out of every 4 years so if I keep predicting this I’m bound to be right eventually.)
Value Investors: The market is overvalued but our stocks are trading at a 30-40% discount to fair value.
Growth Investors: The monthly active user numbers are off the charts for this 3 person company that’s worth $50 billion.
On Market Gains:
Bears: It’s all artificial. (Translation: I didn’t participate.)
Bulls: We’re constructive from here and see a period of consolidation. (Translation: Please don’t fall, we’re all in).
Bears: Everyone is all in on the market. These people are delusional. No one sees the risks building up under the surface.
Bulls: Everyone is still bearish. Stocks climb the wall of worry.
On Interest Rates:
Everyone: Rates are going higher.
On Reading Material:
Bears: Did you read Hussman’s latest piece?
Bulls: Did you see what Siegel wrote today?
How it All Ends:
Bears: This will end badly (Translation: I will be gloating during the next bear market but will be too scared to buy).
Bulls: We predict a soft landing with a healthy correction that will make for a nice buying opportunity. (Translation: I will be too scared to buy during the next bear market.)
Private Equity: We have plenty of dry powder for the distressed opportunities that will arise from the next crisis. (Translation: All of that money will be used to shore up current investments that run into trouble.)
Bulls: A 3% loss is the new 10% correction.
Bears: Biotech? Bubble. U.S. stocks? Bubble. Bonds? Bubble. Gold? Not a bubble. It’s going to $5,000 an ounce.
Bulls: This is not a bubble. The technology boom and bust of the 1990s, now that was a bubble.
Venture Capitalists: It’s a new era, not a bubble. We’re changing the world one app at a time.
Index Investors: I’m a long-term investor through thick and thin (Translation: I become a long-term investor during bull markets.)
Active Investors: Yes, we’ve underperformed, but we will protect you during the next bear market (Translation: A few of us will and we really hope it’s us.)