Technology stocks in the U.S. have yet to show the “broad-based overvaluation” or “investor overreach”
that marked a late-1990s surge, according to Michael Darda, chief economist and market strategist at MKM Partners LLC.
Darda cited an equity risk premium for the S&P 500 Information Technology Index in a report Wednesday. The indicator shows the gap between the index’s forward earnings yield, or the inverse of its price-earnings ratio based on projected profit, and the yield on AAA rated corporate bonds.
The report’s title captured his conclusion: “A Second Tech Bubble? Nope.”
Source: Bloomberg Pro Terminal
Jr Trader Ivan Ivanov
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