Investing in Growth Stocks in Times of Ebuliance

When markets are at extreme levels of optimism, every company in the affected field is treated as a long term winner. But if bought in times of significant optimism and extreme valuations for growth, even the greatest companies are likely to produce outcomes that are mediocre at best. In the crashes that follow most bubbles, enormous inter downs can befall good companies as well as bad. Some of to day's lofty valuations are probably more than justified by future prospects, while others are laughable. It seems imprudent to opine on the level of the overall market without being fully informed regarding the tech companies that now account for so much of equity like the s an p 500.