At this point, as go the leading Tech stocks, so go the markets.
So much capital has crammed into the tech sector this year that it boggles the mind. Tech stocks now make up 40% of the market cap of the S&P 500.
And despite their huge size, they continue to race higher. Nearly. Every. Single. Day.
Here’s a chart of six of the biggest tech companies. Over just the past 7 trading days, they have increased a combined total of half a trillion dollars in market cap. That’s $500 billion, folks — in just a week!
(Source)
Looking at Amazon’s (AMZN) stock price, up nearly 20%(!) since the start of July, we see a trajectory that we’re familiar with — a near-vertical blow-off top:
(Source)
This is the classic manic ending to an asset price bubble — as seen when Bitcoin hit $19,000 in late 2017 and when silver hit $49/oz in 2011. For further affirmation, watch this short video chapter from Crash Course on Bubbles.
In a way, this is comforting to see because it gives us confidence this insane, mindless, unjustified market euphoria will end soon. We just need to be prepared for the predictable violent aftermath when it does.
As we do each week, we’ve once again asked the lead partners at New Harbor Financial, Peak Prosperity’s endorsed financial advisor, to share their latest insights on the end of Great Tech Bubble and what comes next.
by climber99 
