Motley Fool Money Motley Fool Co-Founder Tom Gardner: The Quarterly Call
10 snips
Oct 19, 2025 
Tom Gardner, Co-founder and CEO of The Motley Fool, dives into the current investment landscape. He emphasizes the importance of risk management amid high market valuations and shares five intriguing stock picks, including IBM and Rocket Lab, highlighting their unique strengths. Gardner also compares today’s AI-driven market to the dot-com boom, issuing caution while discussing emotional preparedness for market dips. His insights aim to guide investors through uncertain times with a solid long-term strategy.
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Reduce Speculation Now
- Avoid speculative bets like options, heavy leverage, low-priced stocks, and sports betting during rich market valuations.
- Reduce risk now and reserve speculation for market bottoms when prices are more favorable.
Valuations Signal Higher Risk
- Market valuations are high: S&P P/E above 25 and Nasdaq sales multiples near 6.5x, near 25-year peaks.
- High valuations plus low cash on the sidelines imply lower future returns and higher volatility.
Hold Cash For Opportunities
- Keep cash available because less cash on the sidelines means fewer buyers during corrections.
- Hold cash to buy opportunities when prices fall instead of trying to chase new IPOs or fads.