We’re starting to see people realize the absurdity of COST and NVDA having virtually the same P/E. A low growth, razor thin margin business should not trade at the same P/E as a high growth, high margin business.
You’re seeing it with all the high growth names vastly outperforming the value names today. PG at 30x forward earnings just doesn’t make sense when you can grab something like UPST at the same multiple.
I think over the next weeks, we’re going to see high growth way out perform the “safety” stocks. If you want safety, go in cash. Don’t pay 30x earnings for a company with no growth.
With the vix eclipsing 30 today, and the ridiculous over rotation into “safety”, we’re about to see a huge run in high growth.
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