Hey guys, it's sasha. In the last few days, we've seen one of the most extraordinary examples of stocks running on pure hype at the close of trading yesterday, two brand new ev companies, rivian and looted motors that between them have sold somewhere in the region of 200. To 300 cars in total have market caps of 152 billion dollars and 89 billion dollars respectively, and that places them as the third and eighth most valuable car companies in the world and over the last few days, these two companies have completely exploded in share price. Lucid motors is up 215 percent in the last two months, and rivien went public one week ago at a price of 78, but those shares now traded 172 dollars and in case you haven't spotted it.

There is a definite problem here. The problem is that these stocks have clearly completely separated from any sort of fundamental valuation basis and are now driven entirely entirely by hype. Now, that's not to say that investors can't make money by playing this hype game. Some people will we've all seen what wall street bets can do, and we all know what can happen to huge valuations of tech companies that you know haven't ever earned any money, because we have seen it happen 20 years ago in a dot-com bubble, but even the Dot-Com bubble took many months and even years, to actually build up what we're seeing here is a little different and it seems to be constrained to some specific industries right now.

The flavor of the month is ev companies, but not too long ago we had the same kind of thing happening with some ai stocks, and then we had the cannabis stocks and so on, and this seems to exhibit a very particular sort of new behavior in the Stock market that i wanted to talk about, we have a new wave of investor who doesn't play by the established rules. They are above it. This new species of investor is not satisfied with annual boring returns of just 10 or even 20. That is not good enough.

The target seems to be whatever the next rockets taking off to the moon is and riding that rocket all the way there, and i can see why that is happening. It's obvious social media is completely littered with gurus and financial experts who, in many cases, aren't old enough to actually have an investing account, but they will happily teach you all about the finer aspects of making money in the stock market. We have people on tick tock, who compile comprehensive theses that last a whole 20 seconds on why a stock ticker that you have never heard of is definitely going to get 1 000 returns in the next week. We have crypto tokens that are being rammed in our faces every day on billboard ads on buses displays in times square in new york and even massive youtube channels, encouraging you to go and buy the latest dog meme token and telling you that it will go up In value by a factor of 10 in the next few months, with a straight face, our level of financial, education and common sense has reached a new low, while the level of greed at the same time seems to be heading for a massive all-time high.

Everything has to be all or nothing. You can either join this club and plan to turn your 100 investment into at least a million dollars, or you can stay poor. So now we have the situation where publicly traded stocks have sort of become this new playground. For this mentality, and the worst part is that in many cases it has nothing to do with the actual company.

Unlike the world of crypto tokens, where the majority of these pump and dumps are actually planned, orchestrated, delivered and profited from by the creators of the ponzi scheme themselves, we seem to have packs of these new investors picking a stock that fits their criteria. As you know, the next rocket and all of them getting on board - and yes, some people might makes a lot of money playing these sorts of games, because these sorts of plays will sometimes go up in value very quickly and by very large amounts, but far more People, the vast majority of people who turn up slightly later, are then going to lose a lot more money when the bubble inevitably bursts and the price just comes completely crashing down. I actually made a video that i published on the 25th of october explaining why i think the market is going to react very well to lucid, beginning to deliver the first cars when the share price. As i was filming that video was about 24 and i expected that it would probably go up considerably, but i absolutely did not expect the share price to go up by over a hundred and thirty percent.

In just the three weeks that followed, i actually sold my entire lucid motors position when the share price reached just 41., and i know that some of the comments below will inevitably inform me that i am just salty. I missed out on this huge run and i feel bad about it. I'm just really bad at making investing decisions, but here is something that you should know. I am going to miss this sort of run every single time so save yourself and don't don't feel free feel free to comment if you want, but don't feel like you have to, because this will happen all the time, because i only invest based on fundamentals and Based on numbers and my valuation of a company goes a little bit further than uh, it's the next tesla duh and i prefer not to invest in things that are fueled by a mix of opium and mindless crowd.

Mentality. If i happen to be invested in a company that eventually decides to go on one of these runs, i will have sold my shares way before that peak of the hype, and it's very easy to get drawn into this sort of thing when the share price explodes. Like it has with lucid and rivian recently, everyone starts talking about it. It's all over the mainstream media.

It's on every news website. It's in every newspaper, everyone's publishing articles about it. You hear everyone on youtube, suddenly promoting it. Despite nobody talking about it.

Just a couple months ago, as the next best thing and hype in itself is not really a factor that i actually consider much, i mean a stock can be a very popular investment and still be a very good investment at the same time. But a stock can also be very, very bad as an investment, because the price is massively overvalued through this hype. Hyper loan is not really a sign of anything, but it is really important to be careful, because these sorts of things can really hurt the way these share prices grow is because more and more people hear about them and a sort of sense of fomo kicks in You want to be on that trajectory. That is going upwards.

You want to be part of this incredible growth story and get you know your part of the growth dividends profits as well. You want to invest in the next tesla you feel like. Tesla is already massively overvalued at one trillion dollars that train has gone. It is way too late, but these guys over here they're worth a lot less, and you know they also do electric vehicles, so maybe one day they'll also be worth one trillion dollars so shut up and take my money invested in them, but the road to success For any company is difficult and bumpy, and it is even more difficult by orders of magnitude for a company that needs to build large scale manufacturing, because that is incredibly expensive and very very difficult to do well.

And just because the company has managed to begin producing. A handful of cars - it is not in any way a sign that they are going to become the dominant player in the whole world worth of car sales in the next few years. There's a lot more to getting to volkswagen levels of selling millions of cars around the world. The list of car companies that have gone bust is incredibly long, and i can tell you now that some of these ev companies that we all are really excited by will eventually end up on that list.

I hate to break it to you, but um. I am not saying that either rivian or lucid will definitely end up going bankrupt, but it is very, very early doors for both of those companies. When you look at hype stocks, i just encourage you to be very, very careful, make sure that you are investing for the right reasons and by the way, your mate telling you a random guy on youtube. Telling you reading about it in a newspaper and fomo are not the right reasons.

Make sure you have understood the fundamentals of your investment, make sure you have done your homework properly. I mean you have actually looked at the numbers. Make sure you have a valuation that you understand genuinely trust genuinely believe in that is based on actual projections, because these decisions, these decisions of investing in the stock based on some kind of hype, often don't seem ridiculous. When you make them, it seems well, i'm it's obvious everyone's doing it.

I kind of need to join this movement, but those decisions can suddenly become far more obvious as a bad decision if they end up being bad. In retrospect, when the dust has settled and all the hype has moved on, if you found this video useful, please don't forget to smash the like button for the youtube algorithm. Thank you so much for watching. I really really appreciate it and, as always i'll see you guys later, you.

.