Some investors are worried that current valuations of technology stocks are unsustainable and could signal upcoming turbulence in that sector. In this video, Ken Fisher, investor and founder of Fisher Investments, looks at valuations on tech stocks and examines what they can—or can’t—teach investors about the future.
Ken thinks technology stocks, at current valuation levels, aren’t particularly cheap, but they’re not particularly unreasonable either. Moreover, Ken describes how over intermediate and long periods of time, valuations offer little predictive value. Ken relates an idea from famed investor Warren Buffett, that in the short term the market is a voting machine—that is, the market acts like a popularity contest. However, in the longer term, according to Buffett, the market is a weighing machine—meaning it judges true value. This helps clarify why valuations may be instructive in the short term, but offer long-term investors no real insights as to a stock’s long term value.
If you would like to learn more of Ken Fisher’s and Fisher Investments’ thoughts on the current environment and where markets could go from here, visit us at [ Ссылка ].
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