One of the things I insisted on having in Exodus is a wide array of fundamental analysis tools, catering to those like me who sometimes eschew technical analysis like the Black Death.
Since the market has pulled in a little bit, I thought we’d take a journey into the bowels of the tech sector’s valuation. Shall we?
Weighting wise, tech now comprises more than 21% of the overall market’s capitalization. That’s a high number, because every other sector, aside from healthcare, sucks.
Median p/e ratios are historically high, especially when compared to the median p/e of the overall market.
Price to sales ratios are somewhat on the low end of valuations, since 2005. More importantly, the tech sector is now trading at a discount to the market, for the first time in over a decade. My suspicions lie in the vast amount of biotech IPOs that have come public over the past year, inflating the median p/s ratios of the overall market. As you can see, the average p/s of the overall market is way above trend, twice as high as 2011.
As much as I’d like to say tech is cheap; it just isn’t that cheap. There are other parts of the market, specifically basic materials and consumer discretionary, that are pricing in armageddon. I suspect will continue to frustrate people, offering outsized gains and losses to the trader class.
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Ok Fly are you all in yet?
no way
no V for you. you didnt get it this time.
i don’t know what you’re getting at home
NO
V
moron
It was all I could come up with for today
Fly,I answered your question on the last Blog.
Nothing will ever go wrong at FB. In the end. It will go to a million dollars a share as we all stare into retard goggles virtually getting laid. Nothing to fear when the nerds have it all under control.
I think there’s plenty of downside to the nerds having it all “under control.” There’s a lot of artificial stupidity. E.g. the textbook accidentally for sale for 23 million dollars. And then there were some small companies selling through Amazon ending up going out of business because their valuable merchandise was sold for 1 cent per item.
http://arnoldit.com/wordpress/2015/09/08/algorithms-still-need-oversight/
And of course, the artificial stupidity that affects all of us– where our searches, news feeds etc. are customized based on what we’ve read before. The ultimate effect of this is to make us more and more narrow minded, by only showing us the sorts of things we already read about– actively blocking us from expanding our intellectual horizons.
frog- Not disagreeing with your thoughtful views. But consider that unless you are very wealthy, you must live in the world that exists. This is the hand we have been dealt in our lifetime, and we play it..
Oct will be nasty Sit it out and reap the rewards later. Go to the weekly and monthly charts and look for support. Buy when stocks hit support