Thoughts On Market
Some investors are saying that S&P500 is too high. Its too risky to buy stocks.
That may not be true. S&P500 is a market weighted index. This means that the largest stocks will command the biggest weightage in price movement.
And the few largest stocks are internet or tech growth stocks that have sustainable growth for the next few years.
Examples are Alphabet, Amazon, Facebook, Microsoft, Netflix etc.
In my view, value of a stock is PE relative to its growth. If this is true, then the tech stocks are the cheapest stocks around.
Minus out the internet and tech stocks, the non tech stocks are trading at historically 5 years low valuation, eg Starbucks, Disney, Pepsi, Hershey, Comcast etc.
So the stock market are not expensive.
Attractive buys are FAAT stocks:
Facebook
Alphabet
Alibaba
Tencent
That may not be true. S&P500 is a market weighted index. This means that the largest stocks will command the biggest weightage in price movement.
And the few largest stocks are internet or tech growth stocks that have sustainable growth for the next few years.
Examples are Alphabet, Amazon, Facebook, Microsoft, Netflix etc.
In my view, value of a stock is PE relative to its growth. If this is true, then the tech stocks are the cheapest stocks around.
Minus out the internet and tech stocks, the non tech stocks are trading at historically 5 years low valuation, eg Starbucks, Disney, Pepsi, Hershey, Comcast etc.
So the stock market are not expensive.
Attractive buys are FAAT stocks:
Alphabet
Alibaba
Tencent
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