Renowned American investor: The "Big Seven" U.S. stocks are not overvalued.

Although the rise in the S&P 500 index this year is mainly due to the contribution of a few technology stocks, renowned investor Howard Marks does not believe that the stock prices of the "FANG" stocks are overvalued. Instead, he believes that there may be issues in other parts of the stock market outside the "FANG" stocks. Marks is the co-chairman of Oaktree Capital Management. Marks pointed out that the S&P 500 index had a return rate of 58% between 2023 and 2024, with slightly more than half of the increase coming from the "FANG" stocks. While this situation is historically unusual, Marks stated that he does not believe these seven stocks are overvalued, using the price-to-earnings ratio as a measure of value. He said, "Due to the outstanding performance of these companies, their stock valuations are high, and there is a common perception that their high valuations are the reason for the abnormally high average P/E ratio of the S&P 500 index. The fact is, the average P/E ratio for these companies is around 33 times. This is certainly a number higher than average, but I believe that given the outstanding products, large market share, high incremental profit margins, and strong competitive moats of these companies, this P/E ratio is not unreasonable." He said, "I actually think that the average P/E ratio of 22 times for the 493 companies in the S&P 500 index excluding the 'FANG' stocks, is what makes the overall valuation of the S&P 500 index so high and potentially concerning."