Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)
Twitter
Tags: Technology

Are We in a Tech Bubble Now?

By Kyle Anderson, Associate Editor, Money Morning • @KyleAndersonMM • September 23, 2015

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

The Nasdaq Composite has fallen more than 9% since July 20, causing many bearish experts to claim we're nearing a tech bubble.

TechnologyThe "experts" claim the tech sector became overheated in the 12 months prior to this recent pullback. On July 20, the Nasdaq hit a high of 5,231.94.

From July 2014 to July 2015, the Nasdaq Composite climbed 18.4%. That was more than triple the gains of the Dow during the same time.

But this is not a tech bubble burst that we're experiencing. This latest sell-off is just a natural part of investing. The market breathes in, and the market breathes out.

In fact, we're not even in tech correction territory at the moment. A stock market correction is defined as a 10% drop from an index's high point. We reached a correction in late August when the Nasdaq was down more than 13% from its high, but the index quickly rebounded.

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.

Even at August's lows, we were still far from a tech bubble. A "bubble" bursting is a cataclysmic crash in the market. At the height of the dot-com crash, the Nasdaq fell 80% in just two years.

In fact, we're still not even close to a bear market, which is defined as a 20% drop from the high price.

One of the biggest signals we're not close to a bubble is the IPO market, says Money Morning Defense & Tech Specialist Michael A. Robinson.

"Having worked with startups in Silicon Valley during the 'dot-bomb' implosion, I know what a real tech bubble looks like," Robinson said in August. "We're talking about companies going public in just six months from their founding and stocks traded at insane multiples to their earnings... and many that didn't even have any sales."

"Today, it's just the reverse of that. Startups are opting to stay private far longer," he continued. "They're taking seven to 10 years before their initial public offering, meaning they become 'real' companies with meaningful sales and strong earnings growth before they even consider selling shares to public investors."

Instead of predicting a tech bubble bursting, Robinson says we'll see the tech market climb much higher from here.

"The American economy now runs on high tech - from chips to cloud computing to biotech to Bluetooth and Wi-Fi, these advanced systems form the backbone of our nation's growth," Robinson said.  

Here are three tech stocks that Robinson recommends now at discounted levels...

Join the conversation. Click here to jump to comments…

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments


Latest News

June 3, 2023 • By Garrett Baldwin

Postcards - Do This Whenever You See Buffett Buy OXY

June 2, 2023 • By Nick Black

Market Roundup: Digital Assets to Watch for the Weekend of June 2

June 2, 2023 • By Shah Gilani

earnings
How to Profit on a "Bankruptcy Wave" Hitting Markets Hard
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts Resource Traders Alliance

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz