Dangerous, beware of risks.
The number of components in the Dow is very small, making it easy to manipulate.
Among the top ten holdings, except for Microsoft, $Microsoft (MSFT.US)$ the indexes have all exceeded the upper limit of a reasonable range.
For example, McDonald's, $McDonald's (MCD.US)$ I previously complained that its PE ratio is higher than that of Google and Apple.![]()
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Has McDonald's become a growth stock?
Let's talk about Goldman Sachs. $Goldman Sachs (GS.US)$ With a PE ratio of over 10, it is obviously unreasonable for an investment bank. When the PE ratio was 7 times, I bought it and suffered losses for a while before making a profit. If it drops from 10 times to 7 times without leverage, there is a huge 30% risk, which would be very scary.
Let's talk about $Honeywell (HON.US)$ ， $Caterpillar (CAT.US)$ Both are overvalued, with high risk.
Be cautious of the risk, I have already sold my previous holdings at a high price. I am more aggressive and have directly bought $ProShares UltraPro Short Dow30 ETF (SDOW.US)$ As a risk control measure, I still hold $ProShares UltraPro QQQ ETF (TQQQ.US)$ and
$iShares 20+ Year Treasury Bond ETF (TLT.US)$ without taking a one-sided bet.
Sometimes the market continues along the wrong path for a while due to inertia, so shorting carries high risk and may result in significant paper losses. But mistakes will eventually be corrected.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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本人散户，闲钱投资，名字为系统生成。这里记录投资感悟与趣事。所有言论都纯属娱乐，不是投资建议。此账号为本人唯一社媒平台。
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