Caroline Cakebread
Technology stocks are reaching some worrying new peaks, prompting some market analysts to worry the trend is being driven by a fresh round of speculative frenzy similar to that seen before the dot.com bubble.
According to Bank of America Merrill Lynch Chief Investment Strategist Michael Hartnett, the ratio of the MSCI USA Growth Index to the MSCI Work Value Index is now above its tech bubble high, driven by high flyers like Apple, Amazon, and Facebook.
A sobering thought: the market value of the largest tech stocks now surpasses the gross domestic product of some U.S. metropolitan areas writes Harnett.
