Investing -- Commentary -- April 29, 2024

Locator: 47100INV.

In all my years of investing -- since 1984 -- wow, that's 40 years -- hopefully I've learned something along the way -- I've never seen anything like this market. 

I cannot recall any time when the best sector surged, like the current tech sector surged, and seems to be "real." This is unlike the dot-com surge/bubble in the 1990s (Investopedia) which I remember very, very well. 

We won't know for several years if it's another bubble but right now, unlike the dot-com bubble, the surging sector -- the tech sector actually has a product to sell and can't keep up with demand. 

So, there's that. An AI-surge that doesn't seem to be an AI-bubble.

Then this: this is the longest bull market ever. Again, this is the longest bull market in history. It began in 2009 and any pullback was an anomaly -- the 2020 - 2021 Covid lockdown -- smart investors kept investing through that pullback and by 2023, the bull market trend was back on track.

So, there's that. The longest bull market in history.

Then, this: the bull market shows no slowing despite the Fed doing what it can to slow the market. That's not their mandate, but that's what the Fed is doing -- call it "collateral damage" --  trying to tame inflation. 

So, there's that. 

But this is what's really, really huge.

The huge demographic change between what's going on now and what was going on during the past five bubbles.

Right now, the largest transfer of wealth in the history of humankind.

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QQQ

Link here.

There are 100 tickers in the QQQ. Remember Peter Lynch? 20 companies (tickers). His bio is worth a read.

We'll talk about this later. See this post for the beginning of this discussion.