Dot-Com Parallels Unfair as Tech Stocks Seen Supported by Profit

Sector contributes 35% of S&P 500 profit vs 20% in TMT bubble
Earnings support limits downside during selloff: Capital Group

Traders monitor data inside the Frankfurt Stock Exchange in Frankfurt, Germany, on Monday, April 24, 2017. France’s bonds jumped, with the 10-year yield dropping to its lowest level in three months, after centrist Emmanuel Macron and nationalist Marine Le Pen won the first round of the nation’s presidential election.Photographer: Krisztian Bocsi/Bloomberg

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By Cormac Mullen

February 2, 2018 at 6:15 AM UTC

This article is for subscribers only.

After a busy week, technology shares may have suffered a wobble but there was no slump despite signs of investor concern with the sector.

While some money managers such as GMO LLC’s Jeremy Grantham draw parallels with the end of the tech bubble of 2000, others take comfort that downside may be more limited should a correction come, thanks to much stronger earnings support than in the past.