VOO - QQQ: You Need To Look At This Chart
2024-07-18 12:18:12 ET
Summary
- Judging by yield spread, QQQ’s valuation premium over value stocks is among the highest levels in two decades.
- Historically, value stocks have outperformed growth stocks in the long term.
- I see large odds for the history pattern to repeat given the extreme value-growth gap.
- QQQ’s current disconnection between P/E and profitability metrics further adds to the odds.
QQQ ETF: Value-growth gap
Many recent articles published on Seeking Alpha have expressed concerns about the expensive valuation of the tech-heavy and growth-oriented Invesco QQQ Trust ETF (NASDAQ:NASDAQ: QQQ ). ...
QQQ: You Need To Look At This Chart