Is the Tech Bubble About to Burst Again?
Thursday's stock market drop was a reminder to investors that nothing about 2020 is going to be easy.
Though plenty of tech investors have reaped the rewards from the stock price surge since March, the Nasdaq's 5% sell-off on no news on Thursday showed that those gains could be easily washed away. This is a bull market built on sand, with an economy still stuck in the coronavirus pandemic, an unemployment rate that only just recently fell just below double digits, and a number of industries in crisis mode.
Nonetheless, the S&P 500, led by the tech sector, has surged to all-time highs. And blockbuster gains in the FAAMNG group as well as popular names like Tesla (NASDAQ: TSLA) and cloud stocks like Zoom Video Communications (NASDAQ: ZM) have led to a fervor among investors who have seen returns on individual stocks of 100%, 200%, or even better in recent months.
Source Fool.com
