Wall Street Journal (February 7)
“In a week fraught with dual worries that artificial-intelligence giants are overvalued and that their products could upend entire industries, the blue-chip index on Friday surpassed 50000 for the first time.” The road here was “perilous” and even “rockier” days could follow. “An infrastructure buildout of epic proportions is underway. The exuberance is drowning out concerns—even among top Wall Street executives—that a significant correction is due.”
Tags: 50000, AI giants, Blue-chip index, Buildout, Correction, Dual worries, Epic, Exuberance, Fraught, Industries, Infrastructure, Overvalued, Perilous, Products, Rockier
Seeking Alph (April 18)
“This year’s stock market rally has continued to be a story of strong mega-tech performances. Yet, most of the Magnificent 7 are overvalued compared to their sectors,” and Deutsche Bank’s Jim Reid has pointed out “that today’s Mag 7 are bigger than the entire Chinese market, double the size of the Japanese market, and over four times the size of the UK market.”
Tags: Chinese market, Deutsche Bank, Japanese market, Magnificent 7, Mega-tech, Overvalued, Rally, Reid, Sectors, Stock market, UK market
Markets Insider (February 8)
“The takeover of passive and algorithmic trading has made value investing significantly harder, with overvalued stocks now more likely to win out.” The shift from actively managed investment has “led to fewer investors trading on the merits of individual stocks, making it harder… to find undervalued companies that will eventually close the gap between them and the rest of the market.”
Tags: Actively managed, Algorithmic trading, Investment, Investors, Market, Overvalued, Passive, Stocks, Takeover, Undervalued, Value investing
