Albert Edwards: Tech bubble 2.0 is going to pop


I never thought we would get back to the point where the value of the US tech sector once again comprised an incredible one third of the US equity market. This just pips the previous all-time peak seen on 17 July 2000 at theheight of the Nasdaq tech bubble.

What’s more, this high has been reached with only three of the ‘Magnificant-7’internet stocks actually being in the tech sector (Apple, Microsoft and Nvidia)! If youadd in the market cap of Amazon, Meta (Facebook), Alphabet (Google) and Tesla,then the IT and ‘internet’ stocks dominate like never before.

The key call for investors is whether this is a bubble that will ultimately burst, and ifso when? Or at the very least, is the good news now all in the price and will the stellaroutperformance of US tech grind to a halt at some point?


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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.