Name: Stocks Aren't as Expensive as You Think | WAYT?
Uploaded: 2026-09-08T21:48:57+00:00
Duration: 2765 s

Speakers

Chart Kid Matt — Crypto Analyst, Independent

Michael Batnick — Managing Partner, Ritholtz Wealth Management

Sean Russo — Investment Analyst

Summary

The panel debates whether U.S. stocks are cheaper than they appear, using charts on forward P/E levels, sector valuations, and strong earnings growth. They also discuss the limits of 'invest in what you know' using battered consumer brands, Apple's upcoming foldable iPhone, SpaceX unlock supply dynamics, and historically low market correlation.

Only 27 S&P 500 stocks trade above 40x forward earnings despite the index being near all-time highs.
Tech sector valuations look more reasonable than the bubble narrative implies, with most names below 30x forward earnings.
S&P 500 earnings growth remains strong even excluding realized investment gains and off a high base.
Famous brand stocks such as Nike, Netflix, Domino's, Uber, and McDonald's have massively underperformed, challenging 'invest in what you know.'
Michael Bur is reportedly bullish on Lululemon as his largest position after its post-earnings decline.
The $2,000 foldable iPhone has a bull case based on screen fatigue and nostalgia, and a bear case based on price fatigue.
SpaceX unlock fears marked a bottom as shares rebounded from $108 to $154, but much larger future supply remains a risk.
Realized market correlation is at a 25-year low, a regime that has historically not lasted.

Ideas

Chart Kid Matt Crypto Analyst, Independent 3:46

Market not bubble despite all-time highs

S&P 500 earnings growth is off the charts while the market multiple is only about 19x forward earnings, below the five-year median and right at the 10-year median; this suggests the market is already pricing in fears that AI-related earnings are unsustainable, making broad U.S. stocks less expensive than they appear.

Chart Kid Matt Crypto Analyst, Independent 6:09

Tech valuations remain reasonable

The sector heat map shows technology is not broadly expensive: 38% of tech names trade between 10x and 20x forward earnings, the next most common bucket is 20-30x, and only about one in four names trade above 30x forward earnings; that is reasonable for current tech growth.

Michael Batnick Managing Partner, Ritholtz Wealth Management 14:41

Familiar brands can be bad investments

Peter Lynch's 'invest in what you know' can be terrible advice: many famous consumer and technology brands that people know and love have been destroyed, including AutoZone in a 32% drawdown, Domino's down 28%, Uber down 28%, Nike down 50% with no bounce and still near 2014 prices, Netflix in a 40% drawdown, and McDonald's has not outperformed the S&P 500 since 2007; brand familiarity is not an investing edge.

Sean Russo Investment Analyst 19:01

Michael Bur sees Lululemon upside

Michael Bur revealed in his Substack that Lululemon is his biggest position after its post-earnings fall, and that he wanted to aggressively add below $100; Sean says Bur is smart and could be right on this specific stock, so it deserves monitoring despite the broader bearish brand narrative.

Chart Kid Matt Crypto Analyst, Independent 34:57

Foldable iPhone will succeed

The upcoming $2,000 foldable iPhone is a smart product release because consumers are fatigued by constant screen notifications and are nostalgic for analog, tactile experiences; folding open the phone changes the interface, and many people will ditch their current iPhones for it.

Michael Batnick Managing Partner, Ritholtz Wealth Management 37:40

Unlock fear marked SpaceX bottom

SpaceX unlock fears peaked at the bottom: Google search interest in 'SpaceX unlock' spiked as the stock bottomed around $108, and since then it has rebounded 50% to $154; the market absorbed about 900 million shares because the unlock was on the calendar and already widely known, showing known supply events can be priced in.

Stocks Aren't as Expensive as You Think | WAYT?

Summary

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