Seeing this chart a lot this morning. What do we think about this, Twitter? Legit “bubble” or not? pic.twitter.com/sdjL491IBp
— Cullen Roche (@cullenroche) February 14, 2020
Are we in a giant tech bubble?
It is a question that keeps coming up. I am skeptical (maybe just 10%), but willing to consider other views.
The primary reason for my skepticism is my vivid recollection of the late 1990s. This feels nothing whatsoever like that.
The past 5 years of the S&P saw gains of +65%, or 10.5% Annually.
Nasdaq today: Five Year Returns, +125% 17.6% Annually
And the same five years that preceded the 2000 top?
Nasdaq : Five Year Bubble Returns, +865% 57% annually
Its really hard to suggest that either the S&P or the Nasdaq over the past half decade remotely resembles anything like 1995-2000.
More on this next week . . .