Is a new theme arising?  For many years market participants have been rationalizing the valuations of profitless companies.  Was We Work the proverbial straw that broke the camel’s back?

For the first time in many years I am reading countless stories/reports asking the same question; how could some companies be so vastly overvalued given their lack of profitability?  Many also are now beginning to question the massive valuation of FAANG making similar comments as to mine; how a trillion dollar company could be regarded as a growth company?

Third quarter earnings have been regarded as “mixed.”  Earnings are expected to decline about 4% from the year earlier but forecasts for the fourth quarter have been cut to again of 1.9% from the 5.4% increase that was expected at the end of July.

Last night the foreign markets were mixed.   London was down 0.46%, Paris up 0.11% and Frankfurt down 0.15%.  China was up 0.48%,  Japan up 0.22% and Hang Sang down 0.49%.

The Dow should open mixed as several high profile companies disappointed on both earnings and profits.  The 10-year is unchanged at 1.77%.


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