Feng Huang Wang·2025-08-15 09:07Core Viewpoint - Despite uncertainties surrounding Trump's tariff policies, the US stock market has continued its strong performance from last year, with the S&P 500 index rising over 10% since the beginning of the year, largely driven by a few large tech stocks [1] Group 1: Market Performance - The S&P 500 index has seen a cumulative increase of 58% between 2023 and 2024, with over half of this growth attributed to the "Seven Giants" of technology: Apple, Microsoft, Google, Amazon, Meta, Nvidia, and Tesla [2] - The average price-to-earnings (P/E) ratio for the "Seven Giants" is approximately 33 times, which is higher than the market average, but is considered reasonable given their strong products, market share, high margins, and competitive advantages [3] Group 2: Valuation Concerns - Howard Marks argues that while the "Seven Giants" are not overvalued, the remaining 493 companies in the S&P 500 have an average P/E ratio of 22 times, significantly above the historical average of around 15 times, raising concerns about their valuations [3] - Marks warns that the overall market has shifted from being "high" to "concerning" in terms of valuation, indicating potential risks in the broader market [3]