Fartcoin has cratered nearly 90% from its peak, a sign that the speculative mania is finally losing steam. Meanwhile, Palantir is taking a well-deserved beating now that people are asking a basic question: What does this company actually do?
Let’s look at the numbers:
- P/E ratio: 660
- Forward P/E: 186
- Price-to-Sales: 100
Cheap stock? Hardly. This is still a fantasy priced like it’s printing money when, in reality, it’s selling software contracts no one understands.
Then there’s the bond market, where rates are creeping back up. The 10-year yield has shot past 4.5% after another round of hot inflation data. Hedge funds are taking notice—meanwhile, retail investors are still charging in blindly. The S&P 500 just recorded back-to-back days of only 26 million shares traded. Even the half-day session on December 24 saw more action. That’s not bullish.
Bank of America’s latest fund manager survey is another flashing warning sign. Cash holdings are at their lowest levels in 15 years, while equity exposure is maxed out. Recession fears? At a three-year low. In other words, everyone is already “all in.”
Where does the new money come from to push stocks higher? It doesn’t. Passive investing can only prop things up for so long. Reality always wins.
Sources:
https://x.com/TaviCosta/status/1892210417558045040
https://x.com/Mr_Derivatives/status/1892206805079523564
https://x.com/StealthQE4/status/1892209000613089776
https://x.com/LanceRoberts/status/1892176302725116191
https://x.com/NorthmanTrader/status/1892169082243367181