TMFC: Betting On Consensus Is Foolish This Late In The Cycle

  • The current bull market has lasted 16 years, pushing valuations to levels comparable to past bubbles like the dot-com era and the Nifty Fifty period of the 1970s. TMFC, an ETF tracking the Motley Fool 100 Index, heavily invests in popular high-growth stocks, with an average P/E ratio around 35, which is historically high and risky. The top 10 holdings in TMFC include major tech giants with an average P/E ratio above 48, echoing past market bubbles, where high valuations eventually led to steep declines.