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And just as the upside tends to be overdone in terms of momentum driven price spikes, the same applies to the sell-off.

But once the nascent phenomenon in an emerging asset class of unprecedented price/volume has peaked, that will be that for a lot of traders, who will then go off to find other volatility signals.

Trying to figure out what these companies are actually worth is the challenge. Without exception, valuing them on their balance sheets alone demonstrates in no uncertain terms that the recent heights cannot be thus justified. The valuations reached in the last two weeks are the result of speculation, pure and simple. The nature of the speculation is not based on “what is the fair value of this company,” but rather “how high can this stock be driven based on the irrational exuberance and expectation this stock has generated?”