© 2020 Guardian News & Media Limited or its affiliated companies. And yet US stock markets have remained close to their heady highs as the Federal Reserve has put its weight behind them and kept interest rates at close to zero. I believe that a big, high quality startup portfolio — 30+ companies — is actually less risky than buying high flying tech stocks in the middle of this Fed-fueled bubble. Image source: Getty Images . , Bloomberg. Tech firms continue to grow despite global threats. Bottomline: We have an asset bubble in tech, dependent on unrealistic multiple expansions as Fed liquidity has prompted a chase in the supposed save havens creating the most divergent stock market in decades. “Our working hypothesis, which might be disproven, is that September 2, 2020 was the top and the bubble has already popped,” he wrote in the Oct. 27 note, seen by Bloomberg. ... Media and Telecom stocks) bubble collapsed, so too did analysts' long-term eps estimates. September 23, 2020 UTC: 2:27 PM. I think the current bubble is starting to pop in tech stocks. The recent selloffs came after tech shares were driven to new highs by decisions by Apple, Tesla and others to split their stocks, a move that made them cheaper to buy but did nothing to change the fundamentals of their businesses. S&P Global to buy IHS Markit in all-stock deal worth $44bn, Shares in London and New York rise as US election concerns fade, Stock markets soar as City traders anticipate Joe Biden win, Markets plunge in uncertainty about a second term and a second wave, European stock markets endure worst week since June, Markets fall as prospect of winter lockdowns in Europe triggers sell-offs, US and European markets dip as Covid containment efforts founder, China's main stock markets hit combined record high of $10.08tn. S&P 500 quarterly earnings. This has led to many wondering when the bubble … Last Friday, Bloomberg pegged Bezos’s fortune at $184bn, up $69.3bn from the start of the year. August 30, 2020 UTC: 3:00 PM. Tech stocks power the Nasdaq to a perfect V-shaped recovery – and multiple record highs in the process. Last modified on Sun 13 Sep 2020 19.37 BST. The 2020 Stock Market Bubble In Technology. There is a lot of chatter on Wall Street right now about how tech stocks may be in a bubble, with many comparing the current surge in tech stocks to the dot-com bubble of 1999-2000. Photo / Getty Images . Even today, with tech stock prices still so high, he said, we may only be at the “foothill of bubble phase”. 4 companies investors should be thinking deeply about. All rights reserved. This one is being inflated by some of the biggest, most profitable companies the world has ever seen. “But I would say the next three to five years are going to be very, very challenging.”. As a result, Greenlight has adjusted its short book including adding a fresh bubble basket of mostly “second-tier companies and recent IPOs trading at remarkable valuations,” he wrote. The price-to-earnings (P/E) ratio of the FAANG stocks is about 46. BTIG's Julian Emanuel is telling clients to consider trimming their exposure to big tech stocks. Probably not. The failure of investors to analyze the earning potentials of internet companies led to $5 trillion losses in the dot.com boom in the early 2000s. Fast forward to the 2020 stock bubble by examining the ratio between the total value of companies (enterprise value) and revenue (sales). The Bull Case The stock market bubble can … But if Europe and the US government have become increasingly concerned about Big Tech’s dominance, such concerns will only have been amplified by the lockdowns – and, post-virus and post-election, tech may finally face real political opposition. The only other time when a sector has been that large was back in 2000, which we now know was a bubble. “The rise has mainly been from companies that stand to profit hugely from a world that has a ‘phase shift’ to a more digital, less physical world – Zoom, Amazon, Microsoft, Netflix, Apple all benefit hugely, as do the Covid drug and healthcare companies whose shares have rocketed,” Patrick said. The market of 2020 is a very different place than it was two decades ago. Stock market bubble INSIGHTS THAT WILL HELP YOU! Make sense of the complete insanity of 2020. The 2020 tech stock boom is nothing like the dot-com bubble of 2000, and the sector is set to keep on rising, JPMorgan says. “Our working hypothesis, which might be disproven, is that September 2, 2020 was the top and the bubble has already popped,” he wrote in the Oct. 27 note, seen by Bloomberg. (Bloomberg) -- Technology stocks are in an “enormous” bubble, Greenlight Capital’s David Einhorn said in a letter to investors. 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