Tech Tonic

Sandy Riggs: So, what is Microspan Corporation all about?
Mitch Leary: I just came to meet the president. I wouldn't presume to bore you with my business.
Sandy Riggs: I don't blame you. One thing I don't understand is high tech.
--In the Line of Fire

When's the last time the tech sector was valued at ~1.75x the S&P 500? October 2000.

Ratio of the Tech sector to S&P 500 is at its highest level since October 2000. pic.twitter.com/KxqcChaL5d

— Charlie Bilello (@charliebilello) December 30, 2019

Doesn't mean the ratio can't go higher. After all, we were on the way down from dot.com top when we last marked these levels.

What it does mean is that relative tech valuations are getting pretty rich on a historical basis.