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Heavy Weights: The Real Story Behind Current Market Concentration

Financial Symmetry

This means that the expansion of valuation multiples, like price-to-earnings (P/E), has played a big role.2 For current valuations to be justified for the Mag 7 and large growth stocks more broadly, very large earnings growth will have to continue. Pay attention to valuations. 2 Figure 4 demonstrates. Source: Morningstar.

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Four Hard Investing Lessons From 2022 With Silver Linings

Validea

Even with bear markets like 2000-2002 and 2008-2009, the portfolio had strong returns for a very long period. While some of that outperformance was due to improving fundamentals and earnings, most of it the returns came from the valuation investors assigned to these stocks. Source: [link].

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Today in Market History

The Irrelevant Investor

In 2002, the DVD rental service raised $82.5 In May 2002, the NASDAQ was 67% off its highs and fewer companies were coming public, as the chart below shows. I suppose a better way to say this is that it was cheap based on expectations, but expensive based on traditional valuation metrics. million, just 2.5%

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Not Your Grandpa’s Railroad

Fortune Financial

Since 2002, overall carloads on Union Pacific’s network have declined by a bit less than 1% per year, but Union Pacific’s revenues per car have increased 4% per year. railroads have vastly outperformed the broader stock market over the last five-, ten-, and twenty-year periods?

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Market Correction: What It Is and Why Market Corrections Matter

Walkner Condon Financial Advisors

The index’s loss of 6.24% in 2018 was paltry compared to its 38% loss in 2008 and three consecutive double-digit down years of 2000-2002. This helps to illustrate the fact that market corrections are common over most periods of time and should be viewed as the market resetting stock valuations back to a more fundamental level.

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Transcript: Edward Chancellor

The Big Picture

CHANCELLOR: And look — yeah, but then if you look at the valuation of the market at that time, the market was — the U.S. CHANCELLOR: And look — yeah, but then if you look at the valuation of the market at that time, the market was — the U.S. CHANCELLOR: Yes. And that’s problematic. RITHOLTZ: Right.

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Market Grief – What comes after acceptance?

David Nelson

I accept that rising rates means stock valuations have to go lower. this year so at the very least much of the valuation correction is behind us. Growth vs Value October 2002 – December 2007. The bottom occurred in October of 2002 as we were gearing up for the war but even here value outperformed by a wide margin.