Are Large Capitalization US Technology Stocks Overvalued?

Dear Reader,

US and global stocks continue recovering from the recent correction. That said, are the top five US and global technology stocks Apple, Google, Microsoft, Amazon and Facebook overvalued?

In short, if they are overvalued it is not by a lot. If I have to pin it down the five aforementioned stocks are overvalued anywhere between 10 and 30% at the current pace of economic growth.

If the global economy,US including, enters a recession the top 5 US technology stocks could fall anywhere between 20% to 55%. Why? Simply because these top 5 tech stocks are leveraged mainly on the average consumer. With the exception of Microsoft, of course, which is geared to businesses. However, business would also suffer in a downturn, so Microsoft is not insulated.

For the next 2 years I presume, the 5 large capitalization US technology stocks will continue to party like it's 1999-2000 again.


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Kind regards,
Petar Posledovich