"Feels a lot like the 2000 bubble and may not be over yet"

JC Parets
December 13, 2021

I saw this headline from CNBC last week:

"Sell-off in risky tech stocks feels a lot like the 2000 bubble and may not be over yet"

Meanwhile, here were Tech Stocks last week:

We're looking at Tech stocks relative to the Nasdaq.

Think about it, anything denominated in the Nasdaq is going to have a hard time going up.

But Technology finally is. And on a relative basis, it's still no where near those bubble highs.

Shorter-term, look at this stairstep higher:

And if you think, well maybe that's just because the largest names are holding it up....

When you equally-weight Technology, you can see that is not the case at all. If you take the biggest names out of the equation, the trend is still very much up and to the right:

You can even see it when you move down the cap scale.

It's not just "Large-cap Tech" holding everything up.

Look at Small-cap Tech pushing up against new highs as well:

I'm not sure what sell-off in Tech their referring to.

Perhaps they meant Biotech, which is not in the Technology sector at all. Those are Healthcare stocks.

Or maybe they're referring to the Cathy Wood ARKK Fund, but less than a third of those stocks are in the Tech sector.

So I think we just focus on what actually is happening, instead of the news people think might be happening.

Price never lies.

People do.

Price does not.

JC

 

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