Overvalued Tech: Time for Tangible Assets & Fair Valuations
The tech sector, specifically the 'Big Tech' companies have seen massive gains since the massive accumulation in 2010-2014. However, these increases seem disconnected from the companies' actual value or tangible contributions to the real-world economy. Their high price-to-earnings ratios suggest overvaluation and potential for a market correction.
Invest in sectors with real-world utility and reasonable valuations - Allocate capital to sectors like industrials, materials, consumer staples, or healthcare. These sectors provide tangible products and services and often have more reasonable valuations.
1. High Valuations: Tech stocks, in particular, often trade at high multiples of their earnings or revenues. These high valuations can make them more vulnerable to market downturns, as they can fall more dramatically if investors reassess their growth prospects or risk tolerance.
2. (GOOGL, APPL, AMZN, MSFT, META, NVDA, ADBE, and TSLA) all represent a significant portion of the SNP-500 index due to their large market capitalizations.
3. So, in a S&P-500 meltdown, these tech companies could potentially see significant declines in their stock prices due to these factors. However, it's important to remember that the specifics would depend on a wide range of factors, including the reasons for the market downturn, the companies' financial health and growth prospects, and overall investor sentiment.
4. I would choose Tesla as the only pick out of all 8 as this company has shown lots of potential compared to our tech giants of the now. Even with the upbringing of AI it is not enough to save google or meta, but Apple and Microsoft might hold up strong as they are largest caps.
5.
Google (Alphabet) : ~$1.5 trillion
Apple Inc. (AAPL): ~$2.5 trillion
Amazon (AMZN): ~$1.7 trillion
Microsoft (MSFT): ~$2.2 trillion
Meta Platforms : ~$1 trillion
NVIDIA (NVDA): ~$500 billion
Adobe (ADBE): ~$300 billion
Tesla (TSLA): ~$800 billion
TOTAL = 10 Trillion roughly
Invest in sectors with real-world utility and reasonable valuations - Allocate capital to sectors like industrials, materials, consumer staples, or healthcare. These sectors provide tangible products and services and often have more reasonable valuations.
1. High Valuations: Tech stocks, in particular, often trade at high multiples of their earnings or revenues. These high valuations can make them more vulnerable to market downturns, as they can fall more dramatically if investors reassess their growth prospects or risk tolerance.
2. (GOOGL, APPL, AMZN, MSFT, META, NVDA, ADBE, and TSLA) all represent a significant portion of the SNP-500 index due to their large market capitalizations.
3. So, in a S&P-500 meltdown, these tech companies could potentially see significant declines in their stock prices due to these factors. However, it's important to remember that the specifics would depend on a wide range of factors, including the reasons for the market downturn, the companies' financial health and growth prospects, and overall investor sentiment.
4. I would choose Tesla as the only pick out of all 8 as this company has shown lots of potential compared to our tech giants of the now. Even with the upbringing of AI it is not enough to save google or meta, but Apple and Microsoft might hold up strong as they are largest caps.
5.
Google (Alphabet) : ~$1.5 trillion
Apple Inc. (AAPL): ~$2.5 trillion
Amazon (AMZN): ~$1.7 trillion
Microsoft (MSFT): ~$2.2 trillion
Meta Platforms : ~$1 trillion
NVIDIA (NVDA): ~$500 billion
Adobe (ADBE): ~$300 billion
Tesla (TSLA): ~$800 billion
TOTAL = 10 Trillion roughly
