By: Dividend Sensei
The most irrational bubble in US market history isn’t due to every company soaring to outlandish valuations that are completely detached from fundamentals.
Actually 44% of the S&P 500 is currently in a correction or bear market. A few extremely popular companies are generating 114% of the S&P 500’s gains this year, and the majority of companies are still red for the year.
This creates incredible risk as well as opportunity for prudent long-term investors.
In this article, I explain why one world-class blue-chip in particular is dangerously overvalued, to the point of pricing in the next seven years of growth, and thus offers -4% CAGR expected returns over the next five years.
In contrast, another fast-growing wide moat blue-chip is 35% undervalued and expected to more than triple by 2025.