- Here's a follow-up to my first article about Jeremy Grantham's "Epic Bubble" call.
- This article puts the 70 largest holdings of the Vanguard Growth ETF under the valuation microscope.
- These 70 stocks have an average Price/Sales 92% greater than historical averages; Price/Book +129%; P/E +40%; ROE +55%. (Medians: +82%, +71%, +21%, +26% respectively.).
- Grantham has data on his side. Sixteen of the growth firms appear especially vulnerable to correction; only two look like candidates for accumulation for this buy-and-hold investor.
- The article concludes with five key questions, several critical observations, and my brief action plan in response to the analysis.
For further details see:
'Epic Bubble' 2.0 - Putting 70 Growth Stocks Under The Valuation Microscope