Chart of the Day – August 4, 2020

By: Chris Wenner in Charts 08/04/2020

The Nasdaq’s P/E Ratio has nearly doubled from the March lows.  At roughly 58x, this puts the index in rare territory, even as investors need to pay up for growth in a low growth world.  While earnings in tech – particularly big tech – were mostly big beats, both on a price basis and fundamental basis, the Nasdaq looks to be getting stretched and may need of a breather.  For 2020, the Nasdaq is up over 20%.  Nonetheless, it’s been an impressive year so far for the index, and its relative outperformance could be be a theme for several years to come.

CW

 

By: Chris Wenner

Managing Director

Jonathan Molchan

Wennco's innovative strategies and robust OCIO capabilities are designed for RIAs, Family Offices, and high-net-worth individuals.

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