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Nasdaq Valuations Say You’ll Be Stuck at Home for a Long Time

  • Index’s price-earnings ratio tops 36 for first time since 2004
  • Technology is at the core of enabling touchless world: Forrest
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Source: Bloomberg

In trying to explain the most baffling fact of 2020’s topsy-turvy markets, how tech valuations have swollen to bubble-era extremes even as a pandemic rages, people cite two things. Federal Reserve largesse, and hopes the coronavirus will be quickly contained.

But another, slightly scarier theory exists as to how the value of companies in the Nasdaq 100 has expanded by $2.9 trillion in this of all years. It’s that the Covid-19 crisis’s impact, or at least the social-distancing strictures it has forced upon the world, will prove to be permanent.