Tag Archives: $AMZN
Chasing bubbles during the last stages of their formation results in a much lower return to risk ratio as it is shown below with examples from bitcoin and Amazon stock.
Some traders and investors complain in social media that the game is rigged. This is true but it can work to their advantage.
Since January 2011, bitcoin daily returns volatility is 89% while $1 has grown to more than $8,314. The drawdown profile reflects the speculative nature of this currency and its high risks but some popular large caps went thought similar phases. … Continue reading
As equity valuations reach high levels, returns decrease. Despite spectacular trends in some stocks, returns are nowhere near levels achieved when prices and valuations were lower. Many analysts overlook this effect but its impact is significant because it creates conditions … Continue reading
There is noise in the social media about a +45,000% return in Amazon stock since IPO. That number is an illusion. Only speculators would have held a stock with the drawdown profile shown below. I suspect more investors lost money … Continue reading