Five Tech Firms Account For 55% Of Nasdaq Gains In 2017 – Goldman Warns Of “Valuation Air-Pocket”

Friday, June 9, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Jun 9, 2017

The recent run in large-cap tech stocks (with the top 5 accounting for a stunning 55% of the Nasdaq’s YTD gains) has evoked memories (nightmares?) for some investors of the last euphoric NASDAQ run.

Via Goldman Sachs,

In the absence of growth, you buy growth. Makes sense. Indeed, notions of fiscal stimulus, pro-cyclical policy and central bank tapering have fallen to the wayside as quickly as they came into the narrative in Q4:16. It is against this backdrop that five companies poised to dominate disruption – Facebook, Amazon, Apple, Microsoft and Alphabet – have added a total of $600 bn of market cap this year (chart above) or the equivalent GDP of Hong Kong and South Africa combined. Parallels to the “Nifty-Fifty“ and 1999-2000 are growing as their performance is even more pronounced on a risk-adjusted basis. However with this success have come unintended portfolio consequences for investors.

The Rest…HERE

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