Australia-Goldman Sachs: Does anyone care about the valuation of US stocks? | Australia Chinatown

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Introduction: It’s not just GME and Tesla that ignore valuation at all. In the current US stock market, no matter what valuation method is used

Guide: It’s not just GME and Tesla that ignore the valuation at all. In the current U.S. stock market, no matter what valuation method is used, even if the technology giants whose valuations are already high are removed, the valuation of U.S. stocks is close to history. The highest bit.What happened to US stocks?

In the face of rising U.S. stocks that are increasingly deviating from their fundamentals, does anyone care about the valuation of U.S. stocks?

Goldman Sachs warned last week that if the recent retail short-selling tide does not stop, the market will encounter dire consequences: When millions of retail investors begin to short-sell, the stock market’s price formation mechanism and the basic investment process will It broke, leading to an unprecedented disconnect between price and value.

David Kostin, chief strategist at Goldman Sachs, said in reviewing the recent short-squeeze incident:

This is not the first time that the short and crazy short-squeeze against GME has occurred recently.

In September 2008, when the global financial market collapsed, a similar short-term short-distance made Volkswagen the world's most valuable company, even though Volkswagen only sat on this throne for a few hours.

However, what is different this time is that the last short-squeeze occurred during the financial tsunami, and almost every investor was forced to reassess the core principles and purposes of the capital market.

Today, in this air-squeeze war, Goldman Sachs believes that several aspects of GME stock trading are worth noting.

First of all, from a positioning perspective, for more than a year, the short-sale interest in GME exceeded 100% of the company’s outstanding shares and reached 1% in January. This is a “very unusual situation” because in the past In 140 years, there were only 10 cases where short-selling equity exceeded tradable shares.Goldman Sachs said that if there is such an extreme short-squeeze, it may be a sign of the stock market falling.

Secondly, Goldman Sachs believes that today's US stocks, "price is everything, but valuation is nothing."

The most typical example is the recent jump in GME's stock price. Short-squeezers only care about driving up the stock price, ignoring GME's company valuation.

Another example of US stock investors neglecting valuation is Tesla.Goldman Sachs said that even though Wall Street has an optimistic consensus on Tesla's performance, the crazy market has allowed the company's stock price to rise by more than 700% last year.

In the current U.S. stock market, no matter what valuation method is used, even if the technology giants whose valuations are already high are removed, the valuation of U.S. stocks is close to the highest level in history.

Even for those "serious" companies, the P/E ratio has reached between 100 times and 1000 times...


So, who made US stock investors no longer look at company valuations?

The answer given by Goldman Sachs is the Federal Reserve.

The unprecedented easing policy of the Fed has made US stocks rise, and valuations have been left behind by many investors.

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