Warning: Growth stocks mirror dot-com bubble and pandemic premiums

Although the stock market has slightly retreated following the comments from a Federal Reserve policymaker reflecting a lack of urgency in cutting interest rates due to the economy’s strength, the premium of growth stocks relative to value stocks has grown to a level witnessed only twice before in history.Specifically, the valuation of high-growth stocks has grown 120% in relation to value stocks, regardless of the sector, which is close to the extent seen just two times before – during the dot-com bubble a ...