By Shawn Langlois
SAN FRANCISCO (MarketWatch) -- Americans are fascinated by celebrities, and not just the ones nipping and tucking their way down Hollywood Boulevard. Such a star culture is alive and well on Wall Street too.
Look no further than "glamour" stocks, the ones that investors just can't seem to get enough of. These equities are popular, expensive and widely held. They're also seen as having strong growth potential, valuations be damned.
"Investors aren't afraid to own most of them, even with sky-high valuations," she added. "Well-known brands are still cashing in, regardless of the global economic uncertainty."
She pointed out names like Priceline.com Inc., Starbucks Corp. and Whole Foods Market Inc., along with hot IPO companies like LinkedIn Corp. (LNKD, Trade )
Perhaps the appetite for at least some of these names signals an investing public ready to push ahead, regardless of dreary market prospects. But the lofty valuations might not keep buyers from hopping aboard glamour picks, according to Partha Mohanram, an accounting professor at the University of Toronto's Rotman School of Management.
"I don't see these relatively high prices as warnings signs," he said. "Apple may go up by a factor of two, while Research In Motion Ltd., gets cut in half, but there's a reason for that. Don't be obsessed with where the price is. You need to ask which ones deserve the hype."
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