Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

Peak Greater Fool

June 15, 2018 By Jeremy Jones, CFA

By Africa Studio @ Shutterstock.com

The NYSE FANG+ Index has been on a tear that rivals the dotcom era mania. The chart below shows the relative performance of the NASDAQ composite from year-end 1997 (about 26 months prior to peak) through its collapse and the relative performance of the NYSE FANG+ index from April of 2016 (nearly 26 months ago). Both rose parabolically over these time periods and strongly outperformed the broader S&P 500.

The good news, if you are growing tired of hearing about how much money your nephew is making in Netflix shares, is peak greater fool (or peak stupid if you prefer plain language) may soon be upon us. Not that history should be used as a reliable guide to the future during a mania, but inflated valuations have a history of correcting themselves rather painfully.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Dow Jones Industrial Average 30 Stocks
  • Could Demand for Oil Peak in 2020?
  • Has the World Seen Peak Facebook?
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #5 in CNBC's 2021 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Is It Time to Talk About the Defects of Index Funds Now? - August 12, 2022
  • Disney Catches Netflix in Streaming Wars - August 11, 2022
  • Prices for Electric Vehicles Going UP - August 10, 2022

Search Young Research

Most Popular

  • If the Phone Doesn’t Ring…It’s Me
  • Big Corporations Making Big Investments
  • DESANTIS RESISTS: Suspends Soros-Funded Destruction of America
  • Federal Reserve Governor Signals MORE Big Rate Hikes
  • SHOCK: Home Prices FALL in San Francisco as Market Dries Up
  • Your Retirement Life: Let the Slow and Steady Be Your Way of LIFE
  • The Key Ingredient to an $8 Million Estate Is This
  • The Power of a Compound Interest Table
  • Resilient Nordic Market Spawns Fast Growing Offshoot
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Is Merrick Garland Taking the Blame to Protect Biden?
  • Our Commander-in-Chief Fumbles On
  • Buying A Boat: Who’s Looking Out for You?
  • DOJ Career Officers Disgusted by Garland’s Political Raid on Trump
  • Dick Young’s Investing in Fine Wine
  • If It Smells Fishy … ?
  • The Great Jon Rappoport on Kari Lake
  • How’s the Economy?
  • Your Survival Guy’s Favorite Number is 72: Here’s Why
  • DEMOCRATS PLAY DIRTY: Megynn Kelly Calls Bulls#$t on “Classified Documents” Story

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.