Ben Levisohn: "The tech bubble will continue to inflate" (2020)

After gaining 75.7% from its March 23 low through Sept. 2, the tech-led Nasdaq Composite fell 10%, to 10,847.69, over three trading days, its swiftest correction on record.

But one correction doesn’t mean that the story is over, or that the bubble is ready to burst.  To the contrary, the forces that drove stocks such as Apple (ticker: AAPL) and Amazon.com (AMZN) to astonishing heights remain firmly in place.  They include the companies’ continued growth, the Federal Reserve’s determination to do whatever it takes to keep the economy afloat, retail investors’ newfound interest in trading, and maybe even a bit of fiscal largess.  Stocks will remain volatile, but the tech bubble will continue to inflate.

~ Ben Levisohn, "A Market Bubble That Doesn't Spell Trouble - Yet," Barron's, September 12, 2020