DCF Conclusion Studies Table (Top 10 Companies by Market Cap)
Valuation Levels on the market moving companies.
Folks -
I’m going to share the DCF Conclusions Table of the top 10 market cap weighted stocks in the Nasdaq below. They represent 40% of the index. With this table, you can indirectly understand how much (or how little) upside the index has until earnings estimates change.
But before I do - let’s recap about the market. And let’s not worry (too much) about today’s decline.
A few weeks ago, moves like today happened every single day. With a few weeks of lull and complacency, today’s move has unnerved a lot of people. Embrace the volatility. There are NO opportunities if there are no dips.
Let me walk you through a simple framework to consider.
What: I think the market will attempt a rebound despite rising yields.
When: Rather soon.
How: Yields are more impactful to Small Caps than to Large Caps.
Why: Because we’ve seen this story before on yields going higher.
The key though is from what point the rebound will begin. It could be here directly; it could be from lower.
Point is, highly doubtful we go one straight line down from here based on this catalyst. Yields are a headwind. Not the guillotine for a bull market.
Best not to overcomplicate things. Today was a red day in markets. It was a green day for those who can trade intraday. And should we get a deeper dip, this will be great for swing/investing timeframes. Days like this are normal, healthy, and I would use the word Helpful for bulls.
Below, I’ll share my thoughts on both shorter-timeframes and longer-timeframes.
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