Week of December 30, 2024
In an internal communication about equity market conditions, Sigma’s Director of Research, David Drogheo CFA, noted that “… some articles I have been reading lately have indicated that even if we are in a bubble, it may still have a way to go, as expensive stocks can get even more expensive. For the record, I don’t think we are in dot-com territory. The tech companies of today generate significant earnings and cash flow, and their large market cap concentration seems to be justified by the economic profit that they generate. That said, things do feel frothy to me at the moment.” Our Signals remain unchanged.
Bob Bilkie, CFA.
