Goldman: Nasdaq Valuation Is Getting Frothy

The high-flying Nasdaq 100 (NDX), up 32% year over year, will temper its outperformance to the S&P 500 (SPX), which is up 19% over a similar period, a Goldman Sachs report predicted. While the fundamental outlook for the primary stocks contained in the NDX is positive – heavyweights Apple, Google, Microsoft, Amazon and Facebook generally are given good marks by analysts – the issue with NDX is more of high valuations is getting close to the end point of the relative value spread. Looking at valuation on a ten-year basis, the Goldman report said it will “will curb the magnitude…