Ritholtz Wealth Management

S&P 500 stocks skyrocketing to valuations not seen since dotcom bubble

Stocktake: September was difficult for stocks but investors cannot complain

Market volatility non-existent amid recurring new highs

Market reactions to geopolitical unrest can be counter-intuitive

Key index looks less pricey when you exclude the top 10 stocks

Stocks have gained 13%, and the worst peak-to-trough drawdown has been just 4.2%

Since 2010, it has survived four separate declines of at least 80%

No one is attempting to justify some bubble valuations

Unfashionable value stocks soar while growth stocks such as Apple lag behind

Broad-based nature of rally suggests any pullback will not be a long-lasting affair

S&P 500 has gained more than 75 per cent, the best 12 months in its history

There are signs tech’s recent underperformance may not be a short-lived affair

Speculation is ‘running rampant’, but not everything is frothy

The simple reality is markets tend to be nonchalant about socio-political upheaval

Buying all-time highs can be scary but the reality is new highs are normal

Over 70% of fund managers believe contested election poses the biggest risk to equities

Many of the biggest market winners eventually become the biggest losers

Veteran companies Netflix, Facebook, Microsoft, Apple are all continuing to grow

Shares jumped 13 per cent after this week’s announcement of a five-for-one stock split

Paper says that since the 1970s, high gold prices have occurred when there is marked concern about high future inflation

The big five are now so dominant it is creating lopsided daily readings

Day traders are not reflective of overall sentiment