69 days ago • Posted by Martin Boujol
The S&P 500, with and without Tesla
Adding over-expensive companies like Tesla to the S&P 500, which is in itself already over-valuated compared to the rest of the economy, gives a risk for long-term index investors and their future expected returns. Will the S&P 500 be able to sustain this high level or should we get ready for a downturn ?
Source: Compustat, IBES, FactSet, Goldman Sachs Global Investment Research