Lukas Andel @Lukyn13: "❗️CEO News -- A correction..."

Czech Republic

❗️CEO News -- A correction is coming ❗️ 🔎 Wall Street executives are warning investors of a potential stock market crash after some companies' valuations hit record highs. We are in a time of strong corporate earnings and high valuations. ⸻ 👀 Key data • According to reports, executives expect a market correction of 10% to 15% in the near future, as part of a normal growth cycle. • Their concerns stem from "rich" stock valuations: some companies, especially in the technology sector, are trading at very high price-to-sales or earnings ratios. • Global stock markets saw sharper declines in index futures — for example, S&P 500 futures fell by 1.1% and Nasdaq-100 futures by 1.4% on weaker sentiment. • Highly valued stocks like Palantir Technologies have price-to-sales ratios of over 80x – an extreme metric that raises concerns about the “speculative” nature of the growth. ⸻ ❓Impact for investors and the market in general Two key opportunities/risks arise from such developments: • Risk: If the market has “overvalued” the valuation, a correction may occur that will reduce the value of portfolios, especially for stocks with the highest growth valuations. • Opportunity: For investors who have liquidity and patience, a more favorable entry point may arise – during the correction, quality stocks can be obtained at better prices. Furthermore, the increased caution of managers suggests that it is time to think about whether their portfolios are properly diversified, balanced. Being “fully loaded” now may not be good for our portfolios. ⸻ 🗣️ Statements from management or analysts • Mike Gitlin (CEO Capital Group) said at the summit: “What’s challenging are valuations.” • David Solomon (CEO Goldman Sachs) said: “Valuations in the technology sector are full … we advise clients to stay invested, focus on portfolio allocation, and avoid attempting to time the market.” • Analyst Karen Georges (fund manager Ecofi Investissements) stated: “When you have lofty valuations, it’s really not surprising to see harsh market price action.” ⸻ 👉 Personally, I am still in a bull market, but even in it there are corrections, small drops and or cycles. From a long-term perspective, if the macro data is in order and the results of companies continue to be strong, I would not see a reason for a market reversal. Profits are high this year and so it is normal that there is a sell-off. ❓And how do you perceive such declines? ...Do you see this as the beginning of a bear market, or are you calm and preparing your cash to buy? 🫵 Write in the comments how you see it. I would be happy to hear it, as would a like. 😊 Have a nice day, investor Lukas 🙋‍♂️ $NSDQ100 $SWDA.L (iShares Core MSCI World UCITS ETF) $SPX500 $DJ30 $ZPRR.DE (SPDR Russell 2000 US Small Cap UCITS ETF)

5 Mentioned

NSDQ100

SWDA.L

iShares Core MSCI World UCITS ETF

SPX500

DJ30

ZPRR.DE

SPDR Russell 2000 US Small Cap UCITS ETF