Stock market valuations: Expert says tech stocks face negative returns

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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.

 

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

lmfaooo sure

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