Posted 2/23/2024, 8:44:00 PM
Tech Stock Concentration Sparks Dot-Com Bubble Fears
- Concerns are rising about overconcentration in tech stocks and comparisons to the dot-com bubble
- The dot-com bubble bursting led to a "lost decade" for stocks from 1999-2009
- Diversifying portfolios is key for investors to avoid significant losses if a bubble pops
- The "Magnificent Seven" tech stocks now account for 29% of the S&P 500
- Investors should diversify and not just chase today's high flyers to avoid getting burned if sentiment shifts