Grass! We Have Been Eating Grass

Summary

  • The current market feels more than overbought, with equities trading at historically high valuation multiples using various historical valuation metrics.
  • Investors seem unaware or unconcerned about stretched valuations, driven by hopes that the AI revolution will drive profit margins even higher.
  • Will that optimistic scenario play out given a tepid global economic growth outlook and negatives to profit margins new tariffs will have?
  • I have my doubts. I highlight the reasons investors seem to be "drinking the Kool-Aid" and will end up disappointed in the paragraphs below.
  • Looking for a helping hand in the market? Members of The Biotech Forum get exclusive ideas and guidance to navigate any climate. Learn More »

Herd of cows in a field of buttercups, Milton Keynes, UK

PaulMaguire/iStock via Getty Images

One of my favorite strips from the classic "The Far Side" series was around a herd of cows grazing in the field. One of the herd has an Eureka moment while munching his cud and

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This article was written by

51.19K Followers

Bret Jensen has over 13 years as a market analyst, helping investors find big winners in the biotech sector. Bret specializes in high beta sectors with potentially large investor returns.

Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary and a portfolio update every weekend. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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