Stock-market crash signal with 30-year record of doom flashing for big tech - Business Insider

Stocks that grow to command more than a 4% weight of the S&P 500 have rarely gone on to maintain that status for more than a year since 1990, according to The Leuthold Group.

At first blush, the dominance of these tech companies is not new, particularly to the myriad investors who have reaped their returns. A record 80% ofsay buying US tech stocks is the most crowded trade, according to a recent Bank of America survey — and they are still buying anyway, from the looks of things.

As Segner tells it on a recent company podcast, the club has a narrow entrance and a wide exit: it's extremely difficult for any company to grow that big and enter, but companies typically do not hang in there for very long. Only Microsoft, GE, Cisco, Exxon, Apple, and Amazon have managed to break into the elite club since 1990.

All told, this unprecedented market concentration is bending the norms in a manner that Segner considers unsustainable. That said, he maintains that the risks to these stocks remain palpable. In addition to a reversion to average valuations, big-tech companies risk the wrath of antitrust enforcement, such as the Justice Department's reported plans to file a. New tax laws that crack down on offshore profits and slower demand for cloud computing also pose risks.

Rule no. 1. In Investing. Ignore the advice of so called 'experts'.

Please more 'why's it so expensive' videos and less 'stock market might drop at some point in the next year, might not, if we really knew we wouldn't be writing for BI' articles

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock-market crash: Expert sees Depression-like setup, likely plunge - Business Insider'Absolutely incomprehensible': A $2 billion hedge fund chief explains why investors may soon have to grapple with an across-the-board wipeout — and says a Great Depression-like meltdown isn't out of the question 1930s redux elsewhere too . . .
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stock market news today: Dow, S&P fall on Trump's COVID-19 test, tech slump - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Ok
Source: BusinessInsider - 🏆 729. / 51 Read more »

Palantir IPO reinvigorates debate over Big Tech-military relationship - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Don't get into war. Another totalitarian perspective. The appropriation of the means of production for the benefit of the State. That's fascism.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stock market forecast: S&P 500 to shed around 10% with no stimulus - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Put up pro-people legislation. Extend a lifeline to citizens. They, in turn, will sustain the economy. Same thing has been repeated over the L4 months it's all talk until there's action Nice
Source: BusinessInsider - 🏆 729. / 51 Read more »