More Of The Same

Market internals are horrible and fundamentals more so, but the major indices are being held up by the mega-cap stocks that Hussman terms the “winner take all” group. The poster children make up the FANG group – Facebook (P/E 107), Amazon (P/E 952), Netflix (P/E 348) and Google (P/E 32). It seems that people are selling everything else and buying these momo monkeys.

If previous collapses are any precedent, these gems can be expected (with the possible exception of Google) to lose over 90% of their value.

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