Research Affiliates’ Rob Arnott tells Bloomberg that “You would have to use implausible assumptions to justify today’s price,” in reference to markets. He also specifically calls out Tesla and Netflix as “zombie companies.”
Then Arnott slams down on the valuations of the “FANMAG” companies, noting that their combined valuation is greater than that of entire national markets, saying “If you count up the whole roster of FANMAG companies, that’s the Fang stocks plus Apple, plus Microsoft, their aggregate market value exceeds every market in the world except Japan and the U.S. That’s strange. That surmises that these companies will be world-straddling superpowers in their industries for the foreseeable future and will grow rapidly for the foreseeable future.”
