Angle: Even though we are wary of the high value of giant high-tech stocks, due to the instability of US stocks

July 30, 2024 11:56 AM GMT+9 (some excerpts)

Since US stocks have been sold heavily recently, further attention has been drawn to the sense of value of giant high-tech companies such as NVIDIA and Microsoft, which have driven the rise in market prices since the beginning of the year.
The stock price-earnings ratio (PER) based on profit predictions one year after the S&P 500 Information Technology Stock Index (.SPLRCT) is 29.5 times even after the current sharp drop in stock prices, which is close to the high level for the first time in 20 years set this month.
Even if you look at the market as a whole, it is a historically high price level, and according to LSEG data, the predicted PER for the S&P 500 Comprehensive Index (.SPX) is 20.7 times, which is significantly higher than the long-term average of 15.7 times.