5 replies to this topic

[12SPX]

Thought I'd start a new thread on this subject....

 

Do you know whats really interesting is that tech stocks are once again priced through the roof but everything CNBC has talked about this morning is Starbucks, p/e of 27.85, Chiptole 59.75, Birkenstock 88.69, Disney 41.61.  Then even look at Cosco 57.67.  Anyone notice all of these trade like their tech stocks but they're not.  Price earnings are so high right now and price to book levels back to 2000 levels is getting a little insane going into the new year where economic growth is falling.  We may even be seeing a crisis up here in Canada if the dollar keeps going down lol!!!  For some reason since the Nasdaq crossed 20,000 I keep thinking back to 2000 when I said it wouldn't see 5000 once again for 15 years. Not sure if it will last that long this time around but it will be interesting next year for sure.  Another thing is that when you start seeing crypto's called Fartcoin it reminds me of when we were seeing weird new companies on the internet!!

[12SPX]

Actually there's a good idea, lets see what expensive stocks people can find on here that trade at tech p/e levels lol??

[12SPX]

Oh my really no one can find at least one expensive stock or is it that an 80 p/e ratio is okay??

[robo]

Oh my really no one can find at least one expensive stock or is it that an 80 p/e ratio is okay??

 

I agree they are to high for many companies. The historical data indicates these p/e's will revert back to the mean. That is why so many insiders have been selling.

 

https://schrts.co/cqJEBUwd

 

https://schrts.co/sICkpmHq

Edited by robo, 18 December 2024 - 02:55 PM.

[Douglas]

I'll take that challenge.  How about the behemoth Walmart trading at what used to be a tech multiple, 38, with earnings projected to just grow from $2.48 this year to $2.76 next year, woohoo.  How much bigger can they grow?  They're already everywhere and so danged big that each one covers a city block.  How much more junk can folks possibly need? So the rich are shopping there now, you think they're loading up on high margin Walmart fashion accessories, or just buying low margin groceries and toilet paper.

 

 

Regards,

Douglas

Edited by Douglas, 18 December 2024 - 04:59 PM.

[robo]

Not a timing tool, but a warning signal.

 

"On Friday December 6th, the U.S. stock market pushed to the most extreme level of valuation in U.S. history, based on the measures that we find best-correlated with actual subsequent 10-12 year S&P 500 total returns, as well as the depth of subsequent losses over the completion of market cycles across a century of data. That’s not a forecast. Rather, it’s a statement about current, measurable, observable market conditions."

 

https://www.hussmanf...mment/mc241218/