A great chart by HolgerZ ->
Big Tech vs Non-Profitable Tech (long-duration stocks) curve tracks perfectly the US 10y yield rise. It shows very nicely the consequences of the rise in yields for the stock market. Source chart: Bloomberg
Goldman is embracing the rotational trade as well:
"Sell your Tech Stocks and invest elsewhere" says Goldman Sachs
Tech Stocks are trading at all-time highs relative to the SP500, even surpassing the peak of the Dot Com bubble...
Source: BofA, Bar chart
Semiconductor Value Chain
by @Quartr_App
Is the semiconductors trade getting overcrowded?
VanEck Semiconductor ETF $SMH had the largest inflows in the history of the ETF yesterday, according to Goldman. Source: Markets & Mayhem
Apollo just doubled down on their view that we are in a bigger bubble than the 2000 Dot-com bubble.
3 weeks ago, they said the current bubble is "bigger than the 1990s tech bubble." They note that the Forward P/E ratio for the top 10 tech stocks right now is ~40x. Compared to 2000, at the peak of the Dot-com bubble, the Forward P/E on the top 10 tech stocks was ~26x. Now, Apollo says that ~30% of stocks have a P/E ratio of 30x or more. Overall, Apollo says that P/E ratios now are much higher than they were in 2000. What's next for AI hype? Source: The Kobeissi Letter
Sector weightings are a big reason why international markets have underperformed the US over the last 10-15 years.
US=Tech=Outperformance Source : bespoke
Semiconductor stocks have reached their highest valuation compared to the S&P 500, exceeding the levels seen during the dot-com bubble peak.
source : bloomberg
