3 ms·
Everything isn't overvalued. Avoid the ARK stocks, smallcaps, and crypto. Everything else is sensibly valued.
by kgin 6y ago
Everything isn't overvalued. Avoid the ARK stocks, smallcaps, and crypto. Everything else is sensibly valued.
- ZephyrBlu 6y agoFrom a quick google ARK seems to be an "innovation ETF". Does that mean stay away from tech?
- kgin 6y agoFor the most part, but especially early-stage negative p/e stocks. Surprisingly, the FAANG stocks aren't nearly as stretched as the rest of tech. AMZN is pretty close to in-line with its historical levels.
- 015a 6y agoIts worth looking into what ARK (specifically, ARKK, the main one), actually holds. Its not really "tech"; its more "tech which is expected to explode". Its far riskier than just your Big Tech AMZN/GOOG/AAPL/etc. 1. Tesla (~9%) 2. Roku (~7%) 3. Teladoc Health Inc (~5%) 4. Square (~5%) 5. Zillow (~3%) 6. etc
- Dirlewanger 6y agoWhat's wrong with small caps?
- kgin 6y agoThey've just run up so much this year. The Russell 2000 has a negative p/e ratio.
- andrewmcwatters 6y agoA majority of equities are overvalued. You'd have to be asleep to think otherwise. And of the marketable securities that aren't, projected future cash flows are difficult to calculate (sending the discount rate to 0), or when they aren't, growth prospects are very poor.