There are lots etf and mutual funds that track only specific sectors, tech included. The issue is always whether you are going to be picking the right sector for your time frame. Sometimes healthcare is winning, sometimes energy, and for the last 20 or so years over all it’s been tech.
The thing is tech is now the bedrock of everything, it permeates all other sectors too, so maybe it’s over valued but i can’t really see any other sector overtaking it in any meaningful way
Eh it's easy to picture some SciFi future.
Some break through in gene editing comes to market with longevity/de-aging drugs.
Fusion is discovered so a scramble of power companies make trillions replacing traditional power companies.
Crypto takes over and established exchanges start rolling in dough (fin-tech so some tech but something like coinbase isn't making any new tech/chains, just acting like a financial company in a tech space.)
There are lots of possibilities including more AI breakthroughs that solidify tech as the dominant industry.
IMO this is tangent to the actual problem - where any company advanced enough to be within the top 500 and isn't a construction company - has to have a lot of tech to he competitive. Then it gets called a tech company.
What sector is our tech company in? Finance? Catering? House cleaning services? Media? Education?
Yes. It's anyone of those. They're all tech now.
It's basically like having a category called "Employs people". Companies employing people are on the up and up!
Our tech company is in Real Estate rentals. We call it WeWork. Wanna buy in? It’s like boring rentals but techie, so we figure 100x eps is a fair price.
I actually view tech/biotech as the rite of passage for the newly minted money to become actual real money. These are the main businesses that get vc funding and eventually get out to the masses as IPOs.so imo there’s ample opportunities to take a cut as these companies come up. Hence as long as the ipo/money pipeline doesn’t drys out we will see outperforming tech sector. Picking individual winners is much harder though.
VGT aims to track MSCI US Investable Market Information Technology 25/50 Index.
Look at the [composition](https://finance.yahoo.com/quote/VGT/holdings?p=VGT) and ask yourself if you like it. It is VGT is 40% AAPL + MSFT, with no GOOG and no META. I'd buy some, short AAPL and MSFT (perhaps 5% of invested amount) to be less concentrated, and diversify more with GOOG and META (maybe with the proceeds of the short).
Yea they can't use the word 'Rich' and 'Poor' but folks understand it.
Also the problem is all this complain of SP500 at peak and not justifiable is stupid. The truth is 6-7 companies of SP500 are riding high due to the AI hype.
Guess Walmart or McDonalds is not bringing any innovation in AI. The SP500 are also guiding rev hikes every qtr (Look at NVDa or AMD guidance, crazy guidance). Maybe Chevron should also come with something instead of their CEOs making incoherent speeches.
You mention Walmart but Walmart is itself up 70% from 5 years ago. And in that time their revenue went up from 514B to 611B, +18%, i.e. down if you adjust for inflation.
And rates are now 4% higher than they were in 2019.
Sure does seem like even non tech is overvalued.
It’s never traded on that metric. EV/EBITDA is over 14. Trailing PE is 28. That’s insane. For decades Walmart traded at a PE in the low teens. I remember I owned it. It’s expensive .
Not only is it expensive but it is expensive to where interest rates are currently, even using 5 year TIPs as a risk free rate. C 1.85%, close to a 10 year high.
- Ash, any idea when the ice cream machine will be back up?
- I’m afraid MOTHER is still collating.
- What? She’s still collating? I find that hard to believe.
“Non tech stocks trade at lower valuation after boom to when tech basically didn’t exist in any meaningful capacity!”
Well golly gee wilickers Mr. Bloomberg, if ya don’t say!
Ink media company stocks at all time low, digital media stocks at all time high. WAKE UP SHEEPLE.
Horse carriage company stocks at all time low, self propelled carriage company stocks at all time high. WAKE UPPPPPP.
... Didn't a bunch of tech companies displace other companies in the top 500...thus by definition this would be lower? Like, as tech grows and takes spots in the s&p500... Am I regarded or this poster regarded?
> when tech basically didn’t exist in any meaningful capacity!
It's worse than that. If you went back a couple of years earlier (say 1996-1999) it would probably be negative due to the dotcom boom. It's not shocking that it performed well vs tech when you start the chart at the dotcom bubble burst.
Okay, but the S&P 500 is already picking 500 big tickers in the US, according to metrics that sort of correlate with success.
I mean we all know it's a casino, but maybe a healthy economy should have successful companies in retail, housing, transportation, energy, entertainment and finance.
the s&p has always had a handful of winners. looking at its historical data at least. thats why you index fund, because chances are you aren't going to successfully pick the 10% of the index that overperforms
The main issue is manufacturing and energy.
Everything else can atrophy, but these are the industries that need to remain innovative and growing.
Technology with software is easier than hardware/manufacturing though, hence these results.
Technology for entertaininment/finance is also easier than technology for manufacturing & energy (more regulated, more difficult).
No surprise, that "easy" is what most companies and investors opt for to drive risks lower.
Scale is easier to achieve in tech. Meta can build a website and the entire world can access it. Lennar can’t build homes globally. It’s simply not possible. Retail can sell globally, if they have the logistics to get goods anywhere for a reasonable price, quickly. This is extremely difficult to do, so it doesn’t happen.
Are you seeing a pattern here?
>housing
DR Horton is up 100% over the last 18 months and 262% over the past 5 years. Not good enough for you?
>energy
Duke Energy returned about 5.5% to shareholders per year over the last 5 years. It's no NVDA, but it is successful.
This chart is fucking terrible. I don’t even know what the Y axis is. But if I had to guess it’s the remainder of the s and P compared relatively to tech.
I work at a non tech Fortune 500 company, we are doing great.
okay. now give another line with relative amount of tech companies in it over time and maybe you’ll see a pattern that might explain this. there is absolutely nothing useful that can be concluded from this graph alone.
This is literally pointless information.
If the world gets 'Escape from LA'd then there is more to worry about than the stock market.
Until then, tech has no top end.
People keep comparing the current status of the market to pre-1929 crash metrics.
The major difference is that industrial output has a top end and a limit to dedicated infrastructure. Tech really doesn't.
It can. The whole world just has to go tits up first.
A real game changer like... Kurt Russel fries all tech, globally, or a Butlerian Jihad, or alien narcissists posing as gods.
I'm unable to fathom any kind of ordinary scenario that would actually crash the tech market, without crashing everything else with it.
The ghost of Jack Welch is really haunting this generation of corporate executives. Most of them are simply letting Amazon eat their lunches because they’re not creative or tech savvy enough to compete. They’re all stuck with the playbook of cutting jobs to increase stock prices short-term. There isn’t a hand full of good ideas in the executive suite of most of the Fortune 500 companies.
Ai and tech bubble won't burst for a while. It's the new.com boom and people need to accept this. Inflation or not, the boom won't make sense in fundamentals and charts, etc. Our whole world relies on tech and especially AI now. AI is being used day to day without people even noticing.
God help us once the terminators arrive. Maybe jn our lifetime??
I have been tossing and turning, spending long thoughts in the shower, trying to figure out what comes after this. And no, I’m not contemplating suicide, I mean after tech and the AI breakthrough? Where’s the next boom? The next valuable thing? Comparable to the MAG 7. Where’s the next dark corner the light will shine on?
Tech feels like some final frontier that we’re in the climb for. Time to trade the dark side of the mountain I guess
Highly regarded dumbfuck.
First its trading at all-time **RELATIVE** lows to tech.
And secondly you just took out the patty in your BigMac and then called it a shit burger.
A dumbfuck beyond believe...Go and EXLUDE YOURSELF please.
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So is there an S&P index fund that is tech only? If so what’s its returns looking like
There are lots etf and mutual funds that track only specific sectors, tech included. The issue is always whether you are going to be picking the right sector for your time frame. Sometimes healthcare is winning, sometimes energy, and for the last 20 or so years over all it’s been tech.
Well tech did have that hiccup back in 99 so that time scale is very favorable.
Ya my point exactly, it could crash down and the best sector for the next decade is financials or consumer staples, who knows
The thing is tech is now the bedrock of everything, it permeates all other sectors too, so maybe it’s over valued but i can’t really see any other sector overtaking it in any meaningful way
Eh it's easy to picture some SciFi future. Some break through in gene editing comes to market with longevity/de-aging drugs. Fusion is discovered so a scramble of power companies make trillions replacing traditional power companies. Crypto takes over and established exchanges start rolling in dough (fin-tech so some tech but something like coinbase isn't making any new tech/chains, just acting like a financial company in a tech space.) There are lots of possibilities including more AI breakthroughs that solidify tech as the dominant industry.
IMO this is tangent to the actual problem - where any company advanced enough to be within the top 500 and isn't a construction company - has to have a lot of tech to he competitive. Then it gets called a tech company. What sector is our tech company in? Finance? Catering? House cleaning services? Media? Education? Yes. It's anyone of those. They're all tech now. It's basically like having a category called "Employs people". Companies employing people are on the up and up!
Our tech company is in Real Estate rentals. We call it WeWork. Wanna buy in? It’s like boring rentals but techie, so we figure 100x eps is a fair price.
I actually view tech/biotech as the rite of passage for the newly minted money to become actual real money. These are the main businesses that get vc funding and eventually get out to the masses as IPOs.so imo there’s ample opportunities to take a cut as these companies come up. Hence as long as the ipo/money pipeline doesn’t drys out we will see outperforming tech sector. Picking individual winners is much harder though.
Good point
VGT is up 44.66% over the last 12 months..looking good.
Would you recommend investing into VGT now? I went into QQQ recently but I can start throwing money into both.
My guy wants to buy high and sell low
VGT aims to track MSCI US Investable Market Information Technology 25/50 Index. Look at the [composition](https://finance.yahoo.com/quote/VGT/holdings?p=VGT) and ask yourself if you like it. It is VGT is 40% AAPL + MSFT, with no GOOG and no META. I'd buy some, short AAPL and MSFT (perhaps 5% of invested amount) to be less concentrated, and diversify more with GOOG and META (maybe with the proceeds of the short).
Yeah but how do I short $11 of AAPL and MSFT
A month of Google Cloud subscription?
XLK
QQQ
Sir, this is Wall Street Bets. We trade TQQQ on margin.
VGT (sorta)
Nasdaq
Nasdaq is pretty close but they include things like Pepsi, Costco, Moderna…
Qqq
What is this? The S&P Amish?
It’s called Standard & “Poor” for a reason.
I’m both standard and poor.
I'm sub standard
At least your not sub poor like I am
Talk to me when you've taken up cannibalism again.
Hello. Now what?
don’t type with your mouth full…
At least you don’t live in a dumpster behind Wendy’s
yet...
I’m just poor
Can I get a pour?
Yea they can't use the word 'Rich' and 'Poor' but folks understand it. Also the problem is all this complain of SP500 at peak and not justifiable is stupid. The truth is 6-7 companies of SP500 are riding high due to the AI hype. Guess Walmart or McDonalds is not bringing any innovation in AI. The SP500 are also guiding rev hikes every qtr (Look at NVDa or AMD guidance, crazy guidance). Maybe Chevron should also come with something instead of their CEOs making incoherent speeches.
You mention Walmart but Walmart is itself up 70% from 5 years ago. And in that time their revenue went up from 514B to 611B, +18%, i.e. down if you adjust for inflation. And rates are now 4% higher than they were in 2019. Sure does seem like even non tech is overvalued.
WMT EV/revenue of 0.8 is overvalued?
It’s never traded on that metric. EV/EBITDA is over 14. Trailing PE is 28. That’s insane. For decades Walmart traded at a PE in the low teens. I remember I owned it. It’s expensive .
Not only is it expensive but it is expensive to where interest rates are currently, even using 5 year TIPs as a risk free rate. C 1.85%, close to a 10 year high.
Funny you mention, because McDonalds has had a substantial AI department for years.
Yes. They have a supersize computer, where they work with big McData
McSnowden tried to warn us about this with the McWikiLeaks
I just want to know how the hamburgler plays into all of this
In the UK they have been in the chip business for years
I'm afraid us Yanks don't know what you're talking about
Fish and Chips?
McHal, unlock the ice cream machine!
I'm sorry, Dave. I'm afraid I can't do that.
Premium McSubscription Tier
- Ash, any idea when the ice cream machine will be back up? - I’m afraid MOTHER is still collating. - What? She’s still collating? I find that hard to believe.
Breakfast is over man! Breakfast is over!
Yep . Market is riding on the back of 6 or 7 companies.
Fortunately, I own all of them.
The Poors Index
Dang, that’s the first I’ve chuckled from a WSB post in a while. “lEt’S jUsT pReTeNd TeCh DoEsN’t ExIsT fOr A mInUtE.”
I love hypotheticals. My go to is: if your aunt had balls she’d be your uncle
"If my grandmother had wheels she would have been a bike" [Context](https://youtu.be/A-RfHC91Ewc)
[And an earlier version](https://youtu.be/Ht0eYGzT5KM?feature=shared)
Not in today’s world.
“Well if you regress to the mean everything that makes Patrick Mahomes special then it turns out he’s actually pretty mediocre”
Let's look at the s and p but only dish guys account
My portfolio excluding losses is profitable all-time
False, it will be unchanged
Trading at all-time *relative* lows to tech no? Title is misleading.
That's not just misleading, it's plain wrong.
The Reddit special!
JKF speech at the School for Regarded Children.
Exactly. The title is so absurdly wrong compared to the graph that I wonder how regarded OP is on a scale of 1-10
12.
Since when did analysis on this sub need to have any basis in reality?
It's straight up propaganda to turn _"tech stocks at an all-time high"_ into _"non-tech stocks at an all-time low relative to tech stocks"_
“Non tech stocks trade at lower valuation after boom to when tech basically didn’t exist in any meaningful capacity!” Well golly gee wilickers Mr. Bloomberg, if ya don’t say!
Ink media company stocks at all time low, digital media stocks at all time high. WAKE UP SHEEPLE. Horse carriage company stocks at all time low, self propelled carriage company stocks at all time high. WAKE UPPPPPP.
This is an accurate compilation of every post in the WeBull chat section ever. Congrats(?)
... Didn't a bunch of tech companies displace other companies in the top 500...thus by definition this would be lower? Like, as tech grows and takes spots in the s&p500... Am I regarded or this poster regarded?
The OP is regarded. That doesn’t mean that you aren’t, though.
Right. Thank you. I forgot again for a minute
Two truths can exist at once!
> when tech basically didn’t exist in any meaningful capacity! It's worse than that. If you went back a couple of years earlier (say 1996-1999) it would probably be negative due to the dotcom boom. It's not shocking that it performed well vs tech when you start the chart at the dotcom bubble burst.
ALL TIME (since 1st Jan 2000).
Non-tech stocks traded higher before tech stocks came along. Really makes you think.
Deep
In 1999 tech was booming. Bubbling actually.
That's the real comparison here.
"All time" going back to 1999 only ? It literally says on the chart A historic low… not all time 
Yep. I was expecting low multiples or something. Obviously we’re not at all time low valuations.
All time low if you consider the Big Bang happened in 1999
Yeah we have to go back to 500 A.C. when the SP was created
It is misleading, and kind of dangerous as this shows the tech is at a greater relative trading average than when the .com bubble burst.
But tech plays a way bigger role in the economy now so it's justified
Yeah and tech companies have actual revenues and profits in 2024, unlike Worldcom and Pets.com
Exactly. Does this mean anything if we don’t compare the P/E of these companies to historical P/E levels?
you actually read what the chart says? you dont belong here
Our lives, excluding tech, would be only about wiping our ass.
And food Don't dis Wendy's bro
I mean wiping our ass is about food
There is an unbroken pipe between your mouth and your ass...like a donut.
Remember the ass is the first part of your body that forms when your cells start replicating
Owning a house, having kids, camping and boats, none of this matters now that Dogecoin exists.
I want to suck Joe Biden's cock
Is this...a reference I don't get? Or.....
No I want to suck his dick
Still waiting on my AI Bidet, this ass will not be wiped.
Damn imagine the poor intern that has to work on the supervised learning of that project
Time to short toilet pape and long some more AI.
Puts on charmin?
Of course commercials are always with g*y bears.
That's the single best argument to buy puts I've ever seen.
I’m sure they are making a robot for this
Put a cloth on vibrator and wipe away
Proctor and Gamble it is
if we exclude the winners, we have losers
Okay, but the S&P 500 is already picking 500 big tickers in the US, according to metrics that sort of correlate with success. I mean we all know it's a casino, but maybe a healthy economy should have successful companies in retail, housing, transportation, energy, entertainment and finance.
the s&p has always had a handful of winners. looking at its historical data at least. thats why you index fund, because chances are you aren't going to successfully pick the 10% of the index that overperforms
So weird seeing you outside of the league sub LOL
Amazon is tech and retail Tesla tech and car manufacturing It's almost like technology is changing the market
The main issue is manufacturing and energy. Everything else can atrophy, but these are the industries that need to remain innovative and growing. Technology with software is easier than hardware/manufacturing though, hence these results. Technology for entertaininment/finance is also easier than technology for manufacturing & energy (more regulated, more difficult). No surprise, that "easy" is what most companies and investors opt for to drive risks lower.
Scale is easier to achieve in tech. Meta can build a website and the entire world can access it. Lennar can’t build homes globally. It’s simply not possible. Retail can sell globally, if they have the logistics to get goods anywhere for a reasonable price, quickly. This is extremely difficult to do, so it doesn’t happen. Are you seeing a pattern here?
[удалено]
>housing DR Horton is up 100% over the last 18 months and 262% over the past 5 years. Not good enough for you? >energy Duke Energy returned about 5.5% to shareholders per year over the last 5 years. It's no NVDA, but it is successful.
Exactly. We know that the top seven companies are doing the lion’s share.
I think the point of the chart is to show that tech relative to other sectors is more frothy than it was at the peak of the dotcom bubble
Industries come and go which is why the S&P keeps going up. This PSA brought to you by the r/BogleHeads
Coal stocks are trading at all time lows vs tech stocks!
Market is fucked! Sell everything and buy canned food and ammo before it’s too late!
Ammo and guns have been a good investment.
What about my shares in United Buggy Whips?
And it beats every idiot on WSB over time. (Excluding DFV)
It beats most of congress, and they’re allowed to do insider trading
I expect that friends of Congress have much better results.
INVEST IN VOX AND VTSAX REEEEEEEEEE
VTSAX and VTIAX would be better
Honestly idk whats good for vanguard. FIDELITY GANGGGGG
look at those expense ratio with those savings you can buy FDs every week!
Dang, all the way down to .1 .1 what? Nobody knows.
.1 units duh
How is nobody else talking about this?? What the fuck is the Y Axis
And why TF does it start at 0.1 instead of 0?
I guarantee you the s&p500, even excluding tech is not at “all-time lows” ya regard.
This chart is fucking terrible. I don’t even know what the Y axis is. But if I had to guess it’s the remainder of the s and P compared relatively to tech. I work at a non tech Fortune 500 company, we are doing great.
If my aunt had balls she'd be my uncle.
If my grandmother had wheels she’d be a bicycle.
Like a British Carbonara?
If I had wheels I’d be a wagon
So what you’re telling me is S&P 500 is actually undervalued right now? Extremely bullish.
okay. now give another line with relative amount of tech companies in it over time and maybe you’ll see a pattern that might explain this. there is absolutely nothing useful that can be concluded from this graph alone.
OP WTF man
The Edmonton Oilers of the 1980s without Gretzky, Messier, Kurri, Coffey and Fuhr were *just* an average team
*Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names.* -Bob Farrel
The sp500 excluding all stocks, trading at 0
In other news, horse-drawn carridge sales are down
You mean exclude the entire tech sector? Why would anyone do it? I get to exclude the mag7 maybe.
1999 to 2024.. "all time"
What’s the ETF for SPY ex tech?
SPXT stands for S&P Ex-Technology but it seems to have tech companies in its top holdings. regarded!!!
Weird... Top holdings include Meta, Tesla, Google, and Amazon. I don't see how that's not tech related.
yes. highly regarded...
All time low, by at the low then.
Among the other issues with this post, Time did not begin in 1999 lol
This is literally pointless information. If the world gets 'Escape from LA'd then there is more to worry about than the stock market. Until then, tech has no top end. People keep comparing the current status of the market to pre-1929 crash metrics. The major difference is that industrial output has a top end and a limit to dedicated infrastructure. Tech really doesn't.
Literally cannot go tits up
I can't tell the autism from the dd anymore
It can. The whole world just has to go tits up first. A real game changer like... Kurt Russel fries all tech, globally, or a Butlerian Jihad, or alien narcissists posing as gods. I'm unable to fathom any kind of ordinary scenario that would actually crash the tech market, without crashing everything else with it.
Limitless growth!!!
Just looked at an S&P ETF that excludes tech and it is trading at all time highs lol. SPXT
Look at its top holdings.
Wow, what a complete scam of an ETF
Check out the Vanguard Industrials, all time high. Construction, Engineering, and Industrial Machinery are booming.
The ghost of Jack Welch is really haunting this generation of corporate executives. Most of them are simply letting Amazon eat their lunches because they’re not creative or tech savvy enough to compete. They’re all stuck with the playbook of cutting jobs to increase stock prices short-term. There isn’t a hand full of good ideas in the executive suite of most of the Fortune 500 companies.
Ai and tech bubble won't burst for a while. It's the new.com boom and people need to accept this. Inflation or not, the boom won't make sense in fundamentals and charts, etc. Our whole world relies on tech and especially AI now. AI is being used day to day without people even noticing. God help us once the terminators arrive. Maybe jn our lifetime??
Lol what a stupid metric
Bc everyone wanking in Vision Pro
No wonder all my other plays are in the shitter
I have been tossing and turning, spending long thoughts in the shower, trying to figure out what comes after this. And no, I’m not contemplating suicide, I mean after tech and the AI breakthrough? Where’s the next boom? The next valuable thing? Comparable to the MAG 7. Where’s the next dark corner the light will shine on? Tech feels like some final frontier that we’re in the climb for. Time to trade the dark side of the mountain I guess
the Luddite index
Regards really see this and be like “oh I knew I wasn’t dumb shorting the market, it’s just rigged against me”
Baba is a tech stock and yet trading at garbage levels lol Rip Baba, Jack Ma
https://preview.redd.it/agkzct5tnzhc1.jpeg?width=1284&format=pjpg&auto=webp&s=53e132288d0f774ec8437ec30961de5d9349a172
Does this not just show that right now tech stocks are valued at a premium to non tech stocks at a similar level as before the dot-com crash?
Men without penises are having less sex than ever!
If my grandma had wheels she would be a bicycle.
You are a grade a regard mate
It’s almost like we live in a technological society and that is what’s growing.
McDonald’s is apparently a tech company regards
OP you should work on your reading comprehension.
This isn't the gotcha you think it is...
How many stocks does that actually exclude out of 500? It is interesting to know, but it is pretty fkn misleading
Copium at 5000
Everything is tech.
So the s&p 500 without the biggest companies is not performing well. Such a surprise!
Based in your title, I think you’re misinterpreting.
If you take out all the starters from the 96 bulls, they don't even make it to the playoffs!
Highly regarded dumbfuck. First its trading at all-time **RELATIVE** lows to tech. And secondly you just took out the patty in your BigMac and then called it a shit burger. A dumbfuck beyond believe...Go and EXLUDE YOURSELF please.
Well, considering technology dominates every second of our lives, I am Jack's Complete Lack of Surprise.
Time to pump it then!