Hawaiian crooner Don Ho almost had it right. But instead of “Tiny Bubbles,” The Federal Reserve has blown BIG BUBBLES.
Momentum investing has shifted away from value investing, for the moment, and the NASDAQ Internet index (e.g., Grubhub, Chewys, Alibaba, etc.) has been rising rapidly.
With the help of The Federal Reserve, the NASDAQ Internet Index Forward P/E has skyrocketed.
And the QNET index is currently is at a P/E ratio of … 168.8.
The Fed’s new motto: “Don’t Think Twice, It’s Alright.”