One Of The Greats Warns “They Are All Heading To Zero”
KingWorldNews.com
June 05, 2018
We apologize for the delay in publishing. There was a technical issue that has now been resolved.
By Bill Fleckenstein President Of Fleckenstein Capital
June 5 (King World News) – The market was higher through midday, led by the Nasdaq, which gained 0.3% while the Dow and S&P went nowhere. Again, this is the same momentum that has been feeding on itself with just mindless buying…
In the afternoon, the market fell back to almost unchanged before a rally took it back to where it had been, with only the Nasdaq doing anything. Away from stocks, green paper was mixed, oil was 1% higher while fixed income was a little firmer, and the metals gained about 0.5%.
We Don’t Tout It
Now I’d like to touch on some content that ran yesterday on Bloomberg, including a video segment by Rishaad Salamat, “No Bubble in FAAMG [sic], as Goldman Sees Tech Ruling for Decades,” and a related article by Lu Wang headlined,” Goldman Sachs Doesn’t Think There’s a Bubble in Tech Stocks.” My immediate reaction was, “Oh, yeah?” It turns out it was the typical nonsense that is only seen at market peaks, i.e., it rationalized the valuations of big momentum tech stocks and argued they were going to dominate prospectively because:
“Unlike the technology mania of the ’90s, most of this success can be explained by strong fundamentals, revenues, and earnings rather than speculation about the future…Given that valuations in the aggregate are not very stretched, we do not expect the dominant size and contribution of returns in stock markets to end any time soon.”
The Rest…HERE
