Stock market valuations: Expert says tech stocks face negative returns

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 31 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 51%

Canada News News

A portfolio manager at a $364 billion firm shares 4 indicators that show just how extreme euphoria is — and warns that the stock market’s highest-valued names could be due for 15 years of negative returns, even if they’re fundamentally sound

"Today that number is 88% above its long-term trend line. For reference, at the peak of the market in early 2000, that number was 71% above its long-term trend line. So we're well above the peak of 2000," Coleman said."And for reference, at the bottom of the market in 2009, that number was 50% below the long-term trendline. So we're certainly at elevated levels in the long-term history of the US stock market.", which measures small- and mid-cap growth stocks.

"Forty-eight percent of the constituents by weight are now money-losing companies — this is an all-time high," Coleman said. "Again, for reference, back in early 2000, that similar number, it peaked at 33%, so we're almost 50% above in weight in money-losing companies [than] where we were at the peak of the market in early 2000," he added.

In small- and mid-cap indices, Coleman said that money-losing companies outperformed money-making companies by more than 50%., or special purpose acquisition companies, which are designed to allow a company to go public faster.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Shut it manipulator I ain’t selling 🗣🗣🗣🗣

lmfaooo sure

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market crash: Expert predicts 80% drop this year, $2.5K gold‘We’re in a very unusual situation’: A 48-year market vet breaks down why stocks are hurtling towards an 80% drop this year — and says gold will soar to $2,500 as soon as Q2 Really! If gold is going on a big fat run why is it still going down? Gold could have easily ripped higher this week. And how invested is he in gold I wonder.. Biden
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stock Market Crash: Expert Says S&P 500 Due For 10% Drop, Weak ReturnsThe chief strategist at a $1.5 billion firm breaks down why stocks are staring down a period of weak returns in the months ahead as investors misjudge the recovery — and says they are also mistaking how the Fed will react to inflation More good news please(((
Source: BusinessInsider - 🏆 729. / 51 Read more »