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I think valuations with high PE ratios eventually become self-fulfilling prophecies for large market-caps. These companies are able to raise capital cheaply, de
by blueblisters 6y ago
I think valuations with high PE ratios eventually become self-fulfilling prophecies for large market-caps. These companies are able to raise capital cheaply, deploy it efficiently and keep increasing their market share. With the Fed willing to pull all stops, even weak macro environment doesn't affect PE anymore.
- Dumblydorr 6y agoThat theory works for Tesla and other legitimately innovative companies... but how many companies fail for every TSLA?