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It’s All Relative: Magnificent 7 ‘Not Overvalued,’ One Bank Says
Is the "Magnificent 7" overvalued?
If you're exhausted with that query, you're not alone. I'm likewise weary. Enervated even. Particularly given the veritable constellation of divergent answers to what should be a "yes or no" question.
Given JPMorgan's long-standing defensive stance amid a rally that stubbornly refuses to bend, let alone break or die, it might surprise you to learn that the bank doesn't necessarily view valuations among the market's heavyweights as problematic, or at least not
Every time I read one of these assessments that say, “These [current] prices really aren’t so bad,” I can’t help my mind’s running back to the late 1990s and the so-called dot.com era. Prices were supposedly OK the, too. I recently sold a lot of my LLY, a company with a market cap of $750 bil, more than 20x sales and 23x what I paid for it. If that’s not animal spirits I don’t know what is. I’m just too old for this #@&%. For the first time in my life I’m raising cash, at no opportunity cost. Just dead lucky I can do that for now, at least.
NVidia is trading on a prospective PE of 35x, which is not too bad. But, don’t look at the earning growth rate supporting that at 90%!