Tech Stocks Are Too Pricey to Buy, Too Hot to Sell -- Barrons.com
According to the French novelist Anatole France, a person is never happy except at the price of some ignorance. That might well explain the market today: Anyone bullish looking only at their gains is likely pleased; scratch beneath the surface of the rally, however, and the picture changes.The S&P 500 notched its 31st record close of 2024 on Tuesday, putting it up 15% since the start of the year. The Nasdaq Composite has recorded 20 record high closings in 2024, and risen 19%. By all accounts investors have plenty to celebrate."AI investment has been led by financially strong companies, with high-quality earnings, strong profitability, and healthy cash flows," she writes. "This financial stability reduces the risk of speculative bubbles, in our view, and it means that megacaps are core to the AI story."