Stock Markets Are In Bull Territories 70 - 80% of the Time.
It has been a fantastic rally from 23 March onwards. It was partly liquidity driven, partly led by MAGAF or Microsoft, Amazon, Apple, Google, Facebook, and also speculative, disruptive companies like Tesla, Square, Illumina. The stocks that triumphed were either highly disruptive to existing industries, e.g. Amazon killing small time groceries, Lemonade killing insurance companies, Tesla killing GM, or stay-at-home stocks that you will always use even at home (Google, Facebook, Microsoft). In the east, Tencent, 700 HK, BABA 9988 hk, and Meituan 3690 HK were top winners. They are also versions of the MAGAF stocks. These companies are growing at between 30 – 50% per year in revenue, so it is NO surprise and perhaps justified for them to have 30 – 60x PE. They are growth companies, with very little debt, high profit margins. Their economic moat is often VERY wide. Either via: Network effect. If you leave FACEBOOK and join something else, where else are you going...