These 6 overvalued stocks are making the S&P 500 look more pricey than it really is

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 54 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 97%

Deutschland Nachrichten Nachrichten

Deutschland Neuesten Nachrichten,Deutschland Schlagzeilen

OPINION: Apple, Amazon and Alphabet will not dominate the stock market in a decade’s time. That's because stocks that top market-cap rankings usually underperform on average over the next decade.

It’s impossible to know which stocks will dominate the stock market in a decade’s time, but we can fairly confidently say which companies will not be on that list: stocks that currently top today’s market-cap ranking — namely Apple AAPL, +2.80%, Microsoft MSFT, +2.83%, Amazon.com AMZN, -1.12%, Alphabet GOOG, +0.38% and Meta Platforms FB, -0.02%.

Arnott found that the 1980s were not unique. He reached a similar result for the top stocks of the 1990s, 2000s, and 2010s. On average, a stock on any of these lists underperformed the market over the subsequent decade. In addition, there was between a 70% and 80% chance that any given stock would not be on the comparable list one decade hence.

Valuing a cap-weighted market Arnott believes there are even better ways of weighting stocks in an index beyond equal weighting. His firm maintains a number of so-called fundamental indices that base a stock’s weight on fundamental characteristics such as sales, cash flow, dividends and book equity value.

Consider the S&P 500 currently, in which just six stocks — Apple, Microsoft, Alphabet, Amazon, Tesla TSLA, +1.32% and Meta Platforms — account for 26% of the index’s total market cap. Imagine a situation in which those six are overvalued while the other 494 stocks, on balance, are more fairly valued. In that case, the valuation ratios for the S&P 500 as a whole could paint a skewed picture.

 

Vielen Dank für Ihren Kommentar.Ihr Kommentar wird nach Prüfung veröffentlicht.

So thE stupid following this tweet

what a shitty take lmao

For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to him blake_teddy66 Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success

Not sure you can compare to previous stocks like Exxon and At&T

AI/5G space will be the next decade leaders.

_masterinvestor

SocialFi will taking the world 🤑

Wir haben diese Nachrichten zusammengefasst, damit Sie sie schnell lesen können. Wenn Sie sich für die Nachrichten interessieren, können Sie den vollständigen Text hier lesen. Weiterlesen:

 /  🏆 3. in DE

Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen