Jeremy Siegel dismisses possibility of another technology bubble

Q: The valuations of leading technology stocks are more reasonable today than in the dot-com years of 1999 and early 2000, even if some are stretched.  Are you concerned about the possibility of another technology bubble? 

Jeremy Siegel: We have always had momentum traders in the market, and momentum investing can be a fairly successful strategy.  People ride the wave with the belief that they can jump off before it crashes.  That, of course, doesn’t often happen.  But we are nowhere near the internet bubble.  That was a much more severe situation in 1999 and 2000.  That was the biggest momentum wave that I’ve ever seen. 

It’s difficult to beat the indexes, given the momentum for the artificial-intelligence-related tech stocks.  In some ways, that has taken all the oxygen out of the room, although they are delivering the bacon.  Earnings are coming through, and their valuations are nowhere near the stratospheric valuations that we saw 20 to 25 years ago.

~ Jeremy Siegel, "Tech is 'Nowhere Near' the Dot-Com Bubble," Barron's, July 29, 2024