This speaks volumes about how the market has already priced in exceptional growth when it comes to valuing tech stocks. In simple terms, tech stocks are now 15% more costly than they have been over the last three years and a hefty 24% pricier compared to their typical valuation in the last five years. This eye-popping number doesn’t just edge past the three-year average of 30 it also overshadows the five-year average of 28. To put it simply, if we were to assume that the tech sector’s earnings over the past 12 months remained constant indefinitely, it would take an investor a whopping 35 years to recoup their initial investment. The Invesco S&P 500 Equal Weight ETF (NYSE:RSP) barely moved the needle with a modest 4% gain this year, failing to capture the explosive growth seen in the tech sector. But, you’d still be way behind the tech giants’ jaw-dropping gains.Īnd for those who thought a rising market would lift everyone’s boat, it’s time for a reality check. Now, if you went the traditional route and stashed your cash in the broader SPDR S&P 500 ETF Trust (NYSE:SPY), you’d still be enjoying with a decent 17% return. (NASDAQ:TSLA)-your investment would now have doubled in size. (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon Inc. If you had the smarts to put together a portfolio with these seven big shots at the start of the year- Apple Inc. Seven tech giants, to be precise, have surged by a jaw-dropping 100% or more year-to-date, leaving the rest of the crew in the dust. A small group of stocks has seized the limelight on Wall Street, challenging the widely held belief that gains in the U.S.
0 kommentar(er)
