How bad will Tech Wreck 2.0 get?

Thursday 25 March 2021

Last night witnessed a resumption in technology stock selling on Wall Street. The drivers of this are obvious. During periods of rising interest rates, growth stocks underperform as investors look to more immediate yields over long-term returns:

Nasdaq Everest

So, how inflated is the Nasdaq and how far has it got to fall? First question first. A few charts from Goldman. The bubble is not as widespread as it was in 2000:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.