Chart of the Day – July 8, 2020

By: Chris Wenner in Charts 07/08/2020

Tech isn’t cheap.  That doesn’t mean it can’t or won’t keep going higher.  Here’s a 5-yr chart of the Nasdaq’s Forward-P/E ratio.  At roughly 37.8, this is nearly double what it was in Feb/March of this year, and about 80% higher than its 5-yr avg.

However, tech is one of the few areas of the market where many companies  – notably mega-cap tech – have remained strong throughout COVID-19.  There’s been a huge flight to tech, which is understandable and likely to continue.

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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