12-19-2018, 09:55 AM
Valuations shrink and shrink -- computer and software stocks trade at 15 times next year’s earnings estimates, cheaper than utilities and soapmakers -- and the selling just gets worse.
Stock Sell-Off Defies Everything the Bulls Hoped Would Stop It
“Because if you look inside the stock market...front-end cyclicals show a completely different picture than the defensive parts to the market. Auto stocks are down 30%, they’re not 10% or 11%, building stocks are down 35%, banks...are down 25%...the Russell is down 20%, retail equities are down over 20%. How in the world can the S&P 500 be down only 10% or 11%?” That’s because utilities, staples and pharmaceuticals—economically defensive stocks — are up, he says.
Druckenmiller warns that the stock market is one big ‘mirage’ right now - MarketWatch