When Will Tesla, Bitcoin Or Another Market 'Bubble' Pop?

When a stock or sector of the market is trading way above its intrinsic value, investors may call it a “bubble.”

“We would urge caution, severe caution. Be very afraid of the valuations of these growth companies,” Peter Chiappinelli, portfolio strategist at GMO Asset Allocation, told CNBC.

Market bubbles are investing phenomena that can occur when valuations are driven by exuberant behavior — and they can burn investors.

The last 12 months have seen several bubbles burst. Take meme stocks such as GameStop and AMC, as well as dogecoin.

And there may still be looming bubbles yet to pop.

“One by one, we’ve checked off every condition that the glorious bubble needs. And in terms of crazy behavior, this has been crazier, by a substantial margin, than 1929 and 2000,” Jeremy Grantham, GMO’s co-founder and chief investment strategist, told CNBC’s “Closing Bell.”

Some investors believe Tesla and bitcoin are also bubbles soon to burst.

“Tesla [added] almost [$]200 billion in market cap in a week’s span ... when you see that type of euphoria, in particular names, those could be potential examples of bubbles soon to burst,” Jason Snipe, founder and chief investment officer of Odyssey Capital Advisors, told CNBC.

There are still areas in the market worth investing in that aren’t trading above intrinsic value, according to investors who spoke with CNBC.

“How does one make money in a growth bubble? ... Not every stock clearly is in a bubble. There are some very much unloved, under-researched, underowned pockets,” said Chiappinelli.

Correction (December 10, 2021): At 4:56, the voice-over incorrectly states Tesla's all-time high was over $1,200 on Nov. 1, 2021. The correct statement is that Tesla's current high was actually hit a few days later, on Nov. 4, 2021, at $1,229.91.

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When Will Tesla, Bitcoin Or Another Market 'Bubble' Pop?

[klebercoutinho]

Mrs sonia is legit and her method works like magic I keep on earning every single week with her new strategy.

[FinancialShinanigan]

Having Tesla in the thumbnail always helps with audience engagement lol

[johntate]

Money printing is the sole reason why we are seeing massive price hikes. It’s not just one sector of the economy. And yes, housing is in a bubble. It’s been in a perpetual bubble since 2008. The bubble never popped because the government bailed out the banks that were holding all those junk loans. Don’t forget that the banks threatened the gov or told them that if they didn’t get bailed out that the whole system would come down.

[theodoresamuel]

Money is an issue that everyone has for a better and luxurious life. Life was hard for me until I started making profits on my investment with the help of Mia Linda

[TeslaEVolution]

I can see mainstream media paintings Tesla as "3xp3ns1ve" term, 10 years: Tesla to $30k/share!

[monkeystuffing]

When you give steel and lumber prices can you give units with those too.

[larrygranda]

:) Best of 2022 by far. I am trying PlutoHQ Trading

[haydar]

Everything is bubble no place is save to invest your money

[kokoreborn]

Mrs sonia is legit and her method works like magic I keep on earning every single week with her new strategy.

[walterl.morton]

If only you know what the future says, you'll know that indeed cryptocurrency is the future, investing in it now will be the wisest thing to do. Hold!!! And you"'ll thank yourself

[avalosscott]

Money is an issue that everyone has for a better and luxurious life. Life was hard for me until I started making profits on my investment with the help of Mia Linda

[jessicamoore]

These past 15 months have been crazy in the investment world.

[Earthangel]

How can you say the bubble popped, if Game Stop is still up 1000% instead of 2000%?

[CaesarAugustus.]

Fingers crossed on housing. These prices are too damn high.

[bluerags]

They are missing the most important piece of this bubble story : massive money supply increases.

[nickytaeee]

Getting into the trade market panned out to be one of the smartest moves i have made financially after i got introduced to it by a colleague.

[budsak]

I have to say that in my experience (as a stand-by) the bubble is usually something people jump into, w/out researching, because it sounds good.

[IgorRyltsev]

Great plan, don't invest your money and hope the price would go down... 😆 I'm going to buy some stocks, bit coin and Real Estate for now.

[jenteposthumus]

This video is an advertisement for value investing and not a video about bubbles. Misleading information. Let's take gamestop, CNBC says that the bubble popped and that it lost 50% of its value from its all time high, which is true, but very misleading. Gamestop might be down 50% from its top, but is still up around 3000% from the beginning of 2020. How can you say that the bubble has popped?? If you are going to compare everything from its all time high, it looks like almost everything is a bubble.

Even simple facts in this video don't make sense. For example: 2:56 they say that dogecoin is 'down over 90%' . If the high is 0, 74$ and its down 90%, the price would be 0, 07$, but its around the 0, 20$. That's a 73% drop, not a 'over 90%' drop. Or if you want to show tesla's all time high, just google all time high and you'll see that it's not 1209, 75$. It is 1243.49$ on 4 november. Come on CNBC...

[christodang]

I mean if you consider GME and AMC's current prices compared to pre-2021 prices...I wouldn't say the bubble "burst" completely which I'd equate more to it going at similar levels or below their pre-pumped levels.