Investing - Theory, News & General • Fear, not risk, explains asset pricing

If I understand correctly, this can explain the current value spread. It goes something like this: The value spread is getting wider because the current market is in an ever-increasing FOMO phase and market participants don't want to miss out on the super-large growth companies.

""Stocks with low valuation multiples (value) and small market cap (size) may still be shunned by investors who fear they are missing out on some seemingly low-risk sure thing.""

Although I don't think anyone thinks Nvidia is a low-risk sure thing.

Statistics: Posted by markus75 — Fri Feb 21, 2025 1:34 am — Replies 59 — Views 5819

---