Stock market valuations and fundamentals still matter, even though they may seem quaint at times. In today’s market the riskiest investments seem to keep going up. Stocks sporting huge valuations like Tesla (TLSA) and Rivian (RIVN), cryptocurrencies like Bitcoin (BTC), and SPACs garner a lot of attention, and they have made a lot of money. However, historically this type of investing has ultimately resulted in steep losses.
Mark Armbruster, CFA discusses current market valuation, possible expectations for future returns, and why valuation is still very relevant.