Are We in a Tech Bubble?

The tech-centric Nasdaq Composite has fallen 2.6% since July 21, causing many investors to ask us, "Are we in a tech bubble?"

What's prompting the fear is the Nasdaq's impressive 12-month run prior to this recent drop.

From July 2014 to July 2015, the Nasdaq climbed 18.7%. During the same time, the Dow Jones Industrial Average climbed just 7.4%. The S&P 500 was up just 8.5%.

On July 20, the Nasdaq hit a record high of 5,231.94. Then, investors started worrying that tech stocks had become overvalued, and the downward pressure on the index began.

But according to Money Morning Defense & Tech Specialist Michael A. Robinson, this is not a tech bubble.

In fact, he says you can find tech stocks to buy right now that are cheap compared to the market...

"This is one thing that just about no one is talking about these days: Tech stocks are bargain priced," Robinson said.

As Robinson points out, the Nasdaq costs only 12% more than the S&P 500. The Nasdaq 100 trades at 19.9 times forward earnings, while the Standard & Poor's 500 Index trades at 17.8 times forward earnings.

However, in the last six months, the Nasdaq has more than doubled the return of the S&P 500, 12.1% to 5.2%.

"For just 12% more in cost, you get 133% better performance," Robinson said.

But you need to analyze more than just forward earnings when discussing a tech bubble. And Robinson has found this other major reason why this is not a tech bubble we're seeing right now.