The ratio between tech stocks and the S&P 500 is now over 2 standard deviations ABOVE its historical mean.
Even during the Dot-com bubble of the late 1990s’, this metric peaked at 1.6 standard deviations.
Since 2008, tech stocks have consistently outperformed the S&P 500. During this time, the Nasdaq Composite and the S&P 500 returned 1,167% and 667%, respectively.
With the mergence of AI, US markets are now almost entirely driven by tech stocks.
