I have noticed that money has been flowing into big retail stocks recently. Stocks such as WMT, TGT, COST, AMZN. I feel this is a money move out of frustration after investors see other sectors are bloated and fear of a market correction has pushed them in to a rather safer sector called retail. Because of that this sector has become extremely overvalued which has removed the safeness feature out of this sector. I believe Bank stocks might be a better safe sector to bet in this market if any. I see a correction in this sector which will disappoint the value/safe seeking investors. Somehow I believe AMZN should be treated differently though.
In my post, by value, I meant a stock that should weather the storm in the probable imminent market turbulence and should keep riding higher. Thanks for the list. I will take a look at them.
Value is currently dead, when you see P/E ratio of 600 or 1000. It does not matter for now. A moment will come when it will again.
%% OK; you think all the WMT stock millionaires care about a PE?? I think not. AMZN is more of a tech stock + thats why its in most top trending % tech ETFs. A low PE stock tends to go lower, thats why SDOW has some good moves. That is why low PE stocks like Dow stocks tend to underperform QQQ/related. Sounds like you are right to treat AMZN differently.Not a prediction + not a trend hater.
I believe CAT is also falsely bloated. It is up under the belief that if Biden gets elected, many construction projects will start. That is a way long long dream. You have to wait at least 2 years till it happens. I guess shorts will be rewarded at this price. CAT easily drop to $150.
Under Biden, yes, many construction projects will start. Unfortunately the projects will be in China & Russia mostly. Good thing CAT sells in those countries.
CAT jumped when Trump got elected in the hope of new constructions and that hoped fizzled quickly. The same thing will happen if Biden gets elected. There are two things. What they want to do and what they can do. The max thing that they can do is send out $1000 checks to citizens so they can buy jumbo toilet papers in Costco and let us believe that the economy is all right.