Plus ça change, …
Oct 24, 2024
As the Q3 earnings season progresses, the overall results have been robust, particularly in the technology sector. While there are notable exceptions, such as ASML in Europe, companies like SAP have posted impressive results, largely driven by strong cloud sales. Tesla, often regarded as a tech company, also significantly outperformed expectations.
These outcomes reinforce our perspective that while the S&P 500 appears overvalued compared to its 20-year historical average in terms of price-to-earnings ratio (PER), this is primarily due to the strength of the tech sector. Excluding tech and broadening the scope to global markets, valuations align more closely with historical norms. We believe this trend will persist as long as technology companies continue delivering solid performance. Stay tuned for further updates.