| This story comes up at least every week, plus more often if there is a stock crash, a big or techy IPO, the fed sneezes, or basically anything happens. The reasons are always the same: * the fed is printing money * you buy FUTURE cashflow/price not current ones * "profit" is taxed, so no company makes it if it can avoid it. That doesn't make their revenue is less than a expenses though (see also using share buy backs to avoid multiple levels of taxation). * its often better for companies to spend excess cash than to hand it over (and thus let the government take 20 to 60% of it) * idiots like buying shiney things and that includes shares sometimes * the market can remain wrong longer than you can afford to be right (see for instance the last 20 plus years) * if something has dropped 50% then gone up 20%, you'll hear that it's up 20%! In a pandemic/financial crisis/recession/whatever. Not that it's actually down 40% (that's right, 40% not 30%, that's how percentages work). |