The only reason the S&P 500 is less than 20% off it’s highs is because stuff like PG, clorox, costco, etc. are trading at 25-40x forward earnings with single digit growth.
Then you have a company like AMD posting 71% sales growth, margin expansion, guidance raise, huge buyback, and… sell off down to forward earnings of 18.
My fear is that these value stocks can’t hold up these absurd valuations, so they will begin to crash taking the undervalued growth stocks with them.
It’ll create the buying opportunity of a lifetime, but it’s still frustrating how disconnected the market can get from reality.
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