Dear Reader,
Technology companies stocks. listed on leading global stock exchanges, especially in the USA, are undoubtedly in a valuation bubble territory measured by the most common fundamental valuation metrics Price/Earnings, Price/Sales, Price/Book ratios.
What is going to burst this bubble? Most analysts and portfolio managers thinks the bubble bursting trigger would be the Federal Reserve stopping asset purchases or raising interest rates levels. I actually think it could be more the psychology of investors what will pop the current technology stocks bubble.
At some point investors will decide that technology stocks are too overvalued based on Price/Earnings, Price/Sales, Price/Book ratios and other valuation metrics. Fear will set in, people will start selling, selling will beget more selling and the technology bubble will burst.
The ending of many financial bubbles in history could be traced simply to mass psychology, the investing public suddenly realizing that the respective financial asset is too overvalued.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
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