Foreign media reports, “God of stock” Warren Buffett senior comrade, has reached the age of 97 years old Ba County Vice Chairman Munger (Charlie Munger) last month warned that the current valuation of U.S. stocks is too high, the bubble will eventually burst, but is not sure when.
In this regard, Wall Street analyst David Jagielski, a senior analyst at The Motley Fool, wrote an article pointing out that Munger’s concerns about U.S. stocks are not unfounded, the current P/E ratio of the S&P index is close to 40 times, and the first two times the P/E ratio was so high when the financial crisis and the dot-com bubble period, many investment projects have been over-valued, although the crash does not mean it will occur tomorrow, next week, or even 1 or 2 months later, but a major adjustment will always come.
He suggested that if investors are worried about the collapse of U.S. stocks or stock prices are too high, they must re-evaluate their portfolios, rather than buying Amazon stock with a current P/E ratio of more than 70 times, consider buying Johnson & Johnson (Johnson & Johnson) and other high-performing medical stocks, with a current P/E ratio of 28 times, is relatively much cheaper. Of course, outperforming stocks may also plummet when the stock market collapses, but as this is a reliable investment, it may also recover from the recession.
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