Beijing time 11 news, most of Wall Street, BTIG, chief stock and derivatives strategist Julian Julian (Julian Emanuel) warned on Monday that the biggest winners of the US stock market may have been in the bubble, suggesting investors to consider reducing their exposure to large technology stocks.
in his view, the top five technology stocks known as “faamg” stocks – facebook, apple, Amazon, Microsoft and Google – are the most vulnerable.
said: “the relative performance between the top and bottom plates is uneven, or bubble. The technology sector outperformed the energy sector by 78.2%. It’s a shocking number. ”
he worries that a large number of bubbles in technology stocks could trigger a 10% fall in the NASDAQ index, which has hit 35 historic highs so far this year. On Monday, the index closed down 0.4%, but still only 1% below its all-time high.
Emanuel was one of Wall Street’s biggest bulls in 2020, but he is not sure what will be impacting bubbles. It may be geopolitical tensions escalating, probably in the US presidential election, or as if the bubble burst in 2000.
but he warned that when the technology bubble burst, the S & P 500 index would not be intact because the index also had huge exposure to large technology companies.
he said: “it does suggest that S & P may not be able to hit new highs. Given the current market risk factors, you can definitely see a correction, which is looking forward to the election season. “