A renowned market bear who called the dot-com crash warns stock valuations are at 'nosebleed' levels — and suggests that tech stocks could be the market's 'Achilles' heel'
He highlighted a gap between near-term and long-term growth expectations.Earlier this week,— who was the most accurate stock market forecaster among major Wall Street strategists in 2022 — again sounded the alarm bell for stocks.
"I think Michael Wilson is right," Edwards, who called the dot-com crash at the turn of the millennium, said in a note to clients."US valuations have ascended above the clouds into the thin and dangerous atmosphere of the 'Death Zone.'"24x a year ago But Edwards said another factor will likely pop valuations: the fact that near-term and long-term earnings projections are vastly disconnected. The S&P 500's 12-month forward P/E ratio is represented by the black dotted line in the chart below, while long-term expected earnings growth is in red. Here's another way to spot that difference. The chart below, displaying the price-to-earnings-to-growth ratio, shows the disconnect between the two.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Baidu stock price falls after earnings, stock buyback planBaidu stock whipsaws after Chinese search giant posts revenue beat and announces $5 billion stock buyback plan
Read more »
Sellas Lift Sciences stock plunges to pace premarket decliners after stock, warrants offeringShares of Sellas Life Sciences Group Inc. plunged 36.9% toward a two-month low in premarket trading Friday, after the biopharmaceutical company focused on...
Read more »
Stock market news today: Investors await Fed minutes for rate cluesUS stocks rise as investors await Fed minutes to gauge interest rate trajectory
Read more »
Stock market outlook: Powell doesn't need to crush stocks to fight inflationHistory shows stocks have done well even under the most hawkish Fed, and Powell doesn't need to crush the market to fight inflation, Fundstrat says
Read more »
Another stock market crash coming, Wall Street's top investors warnThe stock market is off to a high-flying start this year — so why are Wall Street's top investors privately getting ready for a big fall? lopezlinette explains the factors behind Wall Street’s fear of a hard landing. ⬇️
Read more »
Volatility surge means the stock market is acting like it's 2022 againThe surge in volatility means investors are acting like it's 2022 again as markets fear bad inflation news, DataTrek says
Read more »