I can only say that the market must be on crack. P/E's are climbing through the roof.
Here is just a sample of current P/E's: TSLA = 850 (What!!!); AMZN = 121; AAPL = 35; and NVDA = 86.
Individual investors don't have to follow into these uncharted waters by avoiding FOMO (fear of missing out). FOMO is as caustic as acid when not contained properly.
Remember, the market is like a bungee cord. When it gets stretched out too far, it will break and no one wants that hook on the end hurdling back at them. That would be painful, but history shows that it always occurs. The question is not will it occur but when it will occur.
Now, portfolio managers have little choice in the matter. The tech companies are value weighted (shares times price) and, thus, they currently dominate their indexes. Portfolio managers must hold the big techs no matter how highly over-priced they are. Their portfolio must contain the overvalued stocks to have any chance of even staying with the index's return let alone beating the index. Not meeting or beating the index results in an outflow of assets under management - AUM in portfolio shop talk. That means their fees shrink because fees are changed on the AUM - not just the gain, but the whole kitten kabutal!
A quote from Howard Marks puts this in perspective. "Most people are driven by greed, fear, envy, and other emotions that render objectivity impossible and open the door for significant mistakes."
Stay safe and watch out for boomeranging bungee cords. I myself would rather keep my eyes intact!
