Stocks Are 'Skating on a Knife Edge,' Research Affiliates' Arnott Says

The video discusses the current state of tech stocks and market trends, highlighting the role of retail investors in driving up valuations, which are now higher than during the tech bubble. It warns of the dangers of market bubbles and the potential for crashes. The NASDAQ's high PE ratio is examined alongside economic indicators like Fed policy and the weaker dollar. The impact of consumer behavior, particularly in the context of COVID-19 and stimulus checks, is analyzed. Finally, Amazon's valuation is scrutinized, questioning its sustainability given its current market price.

What are the potential risks associated with the current market bubbles?

Discuss the implications of Amazon's current valuation as mentioned in the text.