The value spread—the ratio of expensive to cheap stocks on valuation multiples—historically varied between 3x and 6x over 50 years, and peaked at 12-13x during the dot-com bubble, which enabled Asness to conclude numerically that prices were not justified by reasonable growth assumptions.
factualpending
Speaker
Cliff AsnessEvidence Quote
“for about 50 years...it varied between about three and six times...peak of the tech bubble, we saw that thing hit 12 or 13...are there any numbers that could justify 13 times the spread? No.”
Created: 8/12/2026, 6:23:51 PM
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