Bubble Warnings Get Louder With Nasdaq Erasing Huge Monday Rally
- Ned Davis sees price, volume charts showing excessive optimism
- Yet others say rally justified by Fed, business fundamentals
Photographer: Michael Nagle/Bloomberg
This article is for subscribers only.
Just three days after the Nasdaq 100’s biggest rally since April, those gains are history, and warnings are getting louder that tech stocks are in a bubble.
Fifty-year Wall Street veteran Ned Davis added his venerable voice to the chorus of worriers, citing the speed of the index’s advance -- before today -- and surging share volume. The Nasdaq 100 was down 2.8% Thursday, wiping out its gain for the week.