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Stocks & Markets Analysis
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Warning of froth? U.S. equity giants' valuation echoes dot-com exuberance

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Molly wealth talk joined discussion · Jan 5, 2022 17:41
According to Bloomberg, the price-to-earnings ratio of the $S&P 500 Index (.SPX.US)$ 's 10 largest stocks is trading near a level that marked the implosion of the dot-com bubble two decades ago.
Source: Bloomberg
Source: Bloomberg

Elevated valuations combined with a potential rise in bond yields and risk of slowing growth make equities more vulnerable to corrections. And with the S&P 500 Index's top 10 biggest companies comprising nearly a third of the gauge's total weighting, any retreat in these market behemoths could fuel a dip in the entire market. (Most Read from Bloomberg )


S&P 500 top 10 consituent stocks:
$Apple (AAPL.US)$
$Microsoft (MSFT.US)$
$Alphabet-A (GOOGL.US)$
$Alphabet-C (GOOG.US)$
$Amazon (AMZN.US)$
$Tesla (TSLA.US)$
$Meta Platforms (FB.US)$
$NVIDIA (NVDA.US)$
$Berkshire Hathaway-B (BRK.B.US)$
$JPMorgan (JPM.US)$
$Visa (V.US)$
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