Stocks Rebound in 2023 But Some Tech Names May Be Overvalued Again
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The stock market has rebounded in 2023 after a disastrous 2022, with some stocks potentially overvalued again. Examples given are IonQ, Nvidia, and Marathon Digital.
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These stocks have soared due to positive developments like Nvidia's leadership in AI chips, IonQ's quantum computing advances, and Marathon's bets on Bitcoin paying off recently.
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However, the astronomical valuation ratios of these stocks prices in "absolute perfection." Any stumbles could lead to a plunge.
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Risks include competition threatening Nvidia's dominance, viability questions for IonQ's nascent technology, and Bitcoin mining economics worsening for Marathon.
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It may be best to wait for a correction before buying these stocks rather than chasing recent huge gains. Their potential downside in a market crash is significant.