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2017-08-07 — cnbc.com

``Aside from the rise of passive investing, which James says is creating a "herd mentality" among investors, he also believed that the earnings picture isn't telling the whole story. "In the 18 months ending in June, we saw companies that had no earnings, they were losing money, outperform those that were making money," said James. He highlighted many stocks' performances this year may not be reflective of their revenues. But the biggest threat to the market rally, according to James, is the current valuation levels of stocks.''

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