For those not aware:
“The chart measures the relative price performance between technology stocks and the S&P 500. As the chart moves higher, it signals that tech stocks are outperforming the broader market, and vice versa when the chart is moving lower.”
“The surge has eclipsed the dot-com bubble highs from 2000 and the highs seen during the 1960s bull market.”
Doesn’t the S&P incorporate more tech as they succeed thus bringing the average more to a tech basis ?
The difference is the Federal government is running a $2T deficit ( stimulus ). Markets would have corrected already, but we have to live in topsy turvy price land until financial reality becomes real again.
I think the difference this time is *generative AI*. From what I can tell, this generative AI will deliver productivity gains in a number of businesses, and increased productivity translates into dollars.
That said, I’m running generative AI on my desktop, without any internet required, and it is working well. And we’re only in the first inning on this, so who knows where this goes.
But there is a new kid on the block, and that kid is generative AI. That said, it might already be priced into the current valuations.
Based on just this graph it is already showing you that it is different lol
5 comments
For those not aware:
“The chart measures the relative price performance between technology stocks and the S&P 500. As the chart moves higher, it signals that tech stocks are outperforming the broader market, and vice versa when the chart is moving lower.”
“The surge has eclipsed the dot-com bubble highs from 2000 and the highs seen during the 1960s bull market.”
[found in this article here](https://markets.businessinsider.com/news/stocks/tech-stocks-vs-sp500-dot-com-bubble-high-stock-market-2023-11)
Doesn’t the S&P incorporate more tech as they succeed thus bringing the average more to a tech basis ?
The difference is the Federal government is running a $2T deficit ( stimulus ). Markets would have corrected already, but we have to live in topsy turvy price land until financial reality becomes real again.
I think the difference this time is *generative AI*. From what I can tell, this generative AI will deliver productivity gains in a number of businesses, and increased productivity translates into dollars.
That said, I’m running generative AI on my desktop, without any internet required, and it is working well. And we’re only in the first inning on this, so who knows where this goes.
But there is a new kid on the block, and that kid is generative AI. That said, it might already be priced into the current valuations.
Based on just this graph it is already showing you that it is different lol