The Nasdaq Composite has fallen more than 9% since July 20, causing many bearish experts to claim we're nearing a tech bubble.
The "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.
The Nasdaq Composite has fallen more than 9% since July 20, causing many bearish experts to claim we're nearing a tech bubble.
The "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.
But here's what the experts are missing...
The tech-centric Nasdaq Composite has fallen 2.6% since July 21, leaving many investors asking us, "Are we in a tech bubble?"
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 there are two important things to remember when talking about a tech bubble...
Since the last bona fide financial bubble, the real estate and credit bubble of 2007 to 2009, it seems like every time anyone pays a few pennies too much for a stock, there is a flock of analysts ready to start crowing "bubble!" like so many birds on a wire.
I believe that any pundit who calls a sector or market a "bubble" when they really mean "fundamentally or technically overbought" should be banished from pontificating until the real bubble appears.
And the charts I have to show you prove it...
When asked on Varney & Co if we're looking at a tech bubble, Shah makes an important distinction between privately-held social media valuations and technology in general when responding...
Uber, Snapchat, and Pinterest are all highly touted, privately held tech names.
And although none are currently on the stock markets, there is no shortage of discussions about them as potential M&A targets or full-IPO candidates.
But are they all talk at this point? Is Snapchat's value really $19 billion, and Uber $40 billion?
The bears are out in full force trumpeting the news that there's a tech bubble, and the steep decline has started.
As of today's opening, the Nasdaq Composite has dropped 7.3% in just over three weeks. That drop followed an incredible run where the index climbed 28% from September 2013 through September 2014.
But according to Money Morning experts, this is unequivocally not a tech bubble.
In fact, bailing out now is one of the worst moves an investor could make…
This year has seen the busiest U.S. IPO market since 2007, with 199 companies already going public.
Their performance has investors fearing we've hit IPO market bubble territory.
Of the year's 199 IPOs, 23% priced above their initial IPO ranges.
Through the first two weeks of November, 16 companies have doubled their initial public offering price. Six companies doubled their IPO price on the first day of trading alone.
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