Tech Stocks Surge to Record Highs, Fuels Debate on Sustainability of Rally
• Large-cap tech stocks continue to surge to new highs, further widening their lead over broader market • While tech valuations are at unprecedented highs, the pace and direction of the gains matter more than absolute levels • Two-decade “cup-and-handle” chart pattern recently broke out, signaling potentially larger and longer breakout • Human tendencies to “buy low, sell high” often kick in at the wrong times during bull and bear markets • Narrow rally powered by few stocks makes many investors uncomfortable, but doesn’t guarantee pattern won’t repeat