Tesla Stock Soars To $1T Valuation with $1000/share with Rental Car deal

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12 points·TuringNYC··3 comments

I am exclusively an index fund investor (VTSAX and VTIAX). I go into the stock market without the arrogance of thinking I can do analysis on individual stocks. I will always just copy whatever the market is doing.

That being said... there is no way Tesla should have a market cap of $1T.

I'm curious what your feelings are on Mike Burry's outspoken views on the "index bubble?"

The Index Bubble (if there is one) theory suggests that blind index investments are moving good and bad stocks all up to record highs, and that many of the components of these indices do not deserve to rise based on performance.

My own view is: there probably is an index bubble, but self-indexing is too hard and expensive to achieve so I'm still in indices. I have, however, started self-indexing at least half my portfolio with M1-Finance.

To me, there is no such thing as an index bubble. There's no positive feedback loop. If anything, more people investing in indexes decelerates the incentive to invest in them because it reduces your chance at price discovery (high returns). So the traders are actually having an easier time now more than ever.

Of course, the indexes will always match traders' decisions, but they'll always be slightly behind. Which is a fair exchange.

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