Tech Analysts See Signs of Excessive Optimism in 2020’s Rally
- Baird strategist says complacency is high and fear is low
- Being long tech is the most crowded trade, BofA survey says
Zoom has soared more than 530% as one of the most high-profile beneficiaries of the pandemic.
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Technology and Internet stocks have been among the standout performers in 2020, but the scale of their advance has underlined concerns over valuation, suggesting a risk if companies aren’t able to live up to the robust optimism investors have.
Sentiment has grown ever-more bullish of late, a classic contrarian indicator that analysts said should signal caution. Tech stocks, where valuations have long been in question, have been a focus of this risk.