no, it is overvalue and high concentration. Nvidia is worth 11.7% of the US GDP now. At the peak of the DotCom bubble, Cisco was worth 5.5% of the US GDP.
Most of those holdingz are as insurance co. assets and they could be in need of cash for disaster payouts. Or he's preparing for THE CHAINSAW that Trump is about to bring to government waste!
If I may chime in... I don't think it's an apples to apples comparison. Cisco PE ratio was about 200, Nvidia is in its 60's (high indeed). I don't think the chips market is going to slow down at all. Not saying Nvidia cannot go down 50%. But barring accounting shenanigans (SMCI, etc.), the best chip-related companies will continue to thrive in the next few years, imho. Pie-in-the-sky AI, meta-whatever, sexy humanoids, etc. is a different story.
None of that matters! Algos will buy NVDA and QQQ at any price even way higher from here and they will still defend dips the same way when it's a 5T company. People have to learn to accept that. Stop thinking rationally in this market. You have to think like the market.
I swear, I would have figured PE would be extinct by now. I legit have no idea why anybody uses it or cares. The most overrated/ meaningless stat/ratio in the history of the market.
Unless Trump dies all of a sudden, nothing is gonna change the yen's current upward trajectory. The status quo calls for the retest of 160, but I can easily see 200.