If the Magnificent 7 can lift the S&P 500, it can sink it too. That’s exactly what happened yesterday. The Mag 7 was down 4.42% as a group, dragging the S&P 500 down by 0.86%. At the same time, the small-cap Russell 2000 was up 3.59%! There were 4,894 gainers and just 1,187 losers. So, …
Microsoft and Apple have PE ratios of 40 and 35, respectively. Is Microsoft more expensive than Apple? How about Nvidia with a PE ratio of 73? Is Nvidia super overvalued? And considering stock performance—with Nvidia gaining 180% compared to Apple’s 25% and Microsoft’s 26%—does that make Nvidia overvalued simply because its stock increased more? The …