{"id":92454,"date":"2020-10-19T14:20:00","date_gmt":"2020-10-19T11:20:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-the-dot-com-bubble-on-steroids-can-keep-going-a-while-longer-strategists-say\/"},"modified":"2020-10-19T14:20:00","modified_gmt":"2020-10-19T11:20:00","slug":"why-the-dot-com-bubble-on-steroids-can-keep-going-a-while-longer-strategists-say","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-the-dot-com-bubble-on-steroids-can-keep-going-a-while-longer-strategists-say\/","title":{"rendered":"#\n  Why the \u2018dot-com bubble on steroids\u2019 can keep going a while longer, strategists say"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e6f3a4a065\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e6f3a4a065\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/why-the-dot-com-bubble-on-steroids-can-keep-going-a-while-longer-strategists-say\/#If_a_financial_bubble_is_indeed_brewing_it_may_continue_for_longer_than_many_expect_TS_Lombard_strategists_said\" >If a financial bubble is indeed brewing, it may continue for longer than many expect, TS Lombard strategists said.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/why-the-dot-com-bubble-on-steroids-can-keep-going-a-while-longer-strategists-say\/#The_markets\" >The markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/why-the-dot-com-bubble-on-steroids-can-keep-going-a-while-longer-strategists-say\/#The_buzz\" >The buzz<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/why-the-dot-com-bubble-on-steroids-can-keep-going-a-while-longer-strategists-say\/#Random_read\" >Random read<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/why-the-dot-com-bubble-on-steroids-can-keep-going-a-while-longer-strategists-say\/#Callum_Keown\" >Callum Keown<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Why the \u2018dot-com bubble on steroids\u2019 can keep going a while longer, strategists say<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000037611\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:64.99999999999999%;\" data-mobile-ratio=\"64.99999999999999%\" data-layout-ratio=\"64.99999999999999%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-246492?width=140&amp;size=1.5384615384615385 140w,\nhttps:\/\/images.mktw.net\/im-246492?width=540&amp;size=1.5384615384615385 540w,\nhttps:\/\/images.mktw.net\/im-246492?width=620&amp;size=1.5384615384615385 620w,\nhttps:\/\/images.mktw.net\/im-246492?width=700&amp;size=1.5384615384615385 700w,\nhttps:\/\/images.mktw.net\/im-246492?width=860&amp;size=1.5384615384615385 860w,\nhttps:\/\/images.mktw.net\/im-246492?width=1260&amp;size=1.5384615384615385 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-246492?width=620&amp;size=1.5384615384615385\" data-enlarge=\"https:\/\/images.mktw.net\/im-246492?width=1260&amp;size=1.5384615384615385\" alt=\"\" title=\"If a financial bubble is indeed brewing, it may continue for longer than many expect,...\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"If_a_financial_bubble_is_indeed_brewing_it_may_continue_for_longer_than_many_expect_TS_Lombard_strategists_said\"><\/span>If a financial bubble is indeed brewing, it may continue for longer than many expect, TS Lombard strategists said.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            AFP via Getty Images<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       Stocks are being driven higher at the start of the week by the same old hopes of a new U.S. stimulus deal.<\/p>\n<p> House Speaker Nancy Pelosi has set a 48-hour deadline for the White House to strike a deal with the Democrats over a stimulus package before November\u2019s election.\u00a0<\/p>\n<div class=\"paywall\">\n       Strong China growth data, which showed third-quarter gross domestic product rising 4.9% compared with the year-ago period, also buoyed investors early on Monday.<\/p>\n<p>On the 33rd anniversary of the \u201cBlack Monday\u201d market crash, the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"positive\">+0.39%<\/bg-quote><br \/>\n       was set for a 197-point gain at the open.<\/p>\n<p>In our <strong>call of the day<\/strong>, TS Lombard strategists said the outperformance of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> \u2014 and therefore Growth \u2014 stocks was set to continue \u201cfor a while longer\u201d yet.<\/p>\n<p>Chief U.S. economist Steven Blitz and head of strategy Andrea Cicione said they were \u201cnot alone in being nervous\u201d about Tech stocks valuations. \u201cGrowth has had an unprecedented surge for more than 13 years and the recent acceleration <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears completely unsustainable,\u201d they said, noting that the recent swell was more extreme than the Growth outperformance during the dot-com bubble \u2014 as seen in the chart below (left). They described it as the \u2018dot com bubble on steroids,\u2019 in a note.<\/p>\n<p>However, on closer inspection they said the argument for rotating into Value was \u201cless convincing,\u201d as the first two years of stronger Value returns post-2000 were during a bear market. \u201cIf the same were to happen this time around, rotating into Value would be at best a defensive strategy.\u201d<\/p>\n<p>But Blitz and Cicione said if a bubble was indeed inflating in tech, there was no guarantee Growth\u2019s outperformance would stop now. \u201cThrough its aggressive policy choices, the Fed has engineered a rebound in equity prices since March that is giving investors the perception of lack of risk. So why stop betting on a winning horse now, especially if there is no downside,\u201d they said.<\/p>\n<p>The chart below (right) shows that while the valuation gap between Growth and Value is above average, it is not as extreme as it was in 2000. But Growth\u2019s run may be more advanced that the valuation gap suggests, they added, particularly as many tech companies are now both large and very profitable \u2014 in contrast to the late 1990s \u2014 making it harder to justify the multiples seen at the height of dot-com mania.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:41.953125%;\" data-mobile-ratio=\"41.953125%\" data-layout-ratio=\"41.953125%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-246487?width=140&amp;size=2.383612662942272 140w,\nhttps:\/\/images.mktw.net\/im-246487?width=540&amp;size=2.383612662942272 540w,\nhttps:\/\/images.mktw.net\/im-246487?width=620&amp;size=2.383612662942272 620w,\nhttps:\/\/images.mktw.net\/im-246487?width=700&amp;size=2.383612662942272 700w,\nhttps:\/\/images.mktw.net\/im-246487?width=860&amp;size=2.383612662942272 860w,\nhttps:\/\/images.mktw.net\/im-246487?width=1260&amp;size=2.383612662942272 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-246487?width=620&amp;size=2.383612662942272\" data-enlarge=\"https:\/\/images.mktw.net\/im-246487?width=1260&amp;size=2.383612662942272\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n             T S Lombard U.S. Watch<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>\u201cInvestors looking to rotate from Growth to Value would be better off doing so in small-caps, where the odds of a sustained period of Value outperformance are more favorable.<\/p>\n<p>\u201cHowever, they should bear in mind that if a financial bubble is indeed brewing, it may continue to do so for longer than many expect \u2014 under such a scenario, Growth will probably keep doing better until the bubble pops,\u201d they said.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"The_markets\"><\/span>The markets<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>After closing 112 points higher on Friday, the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"positive\">+0.39%<\/bg-quote><br \/>\n       was set to open higher again on Monday, on hopes for a U.S. stimulus package and China growth data signaling a continued recovery. Dow futures<br \/>\n        YM00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210407078\/delayed\" class=\"positive\">+0.73%<\/bg-quote><br \/>\n       were 0.7% up in early trading, implying a 197-point gain for the Dow at the open, while S&amp;P 500 futures<br \/>\n        ES00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209948968\/delayed\" class=\"positive\">+0.85%<\/bg-quote><br \/>\n       and Nasdaq futures<br \/>\n        NQ00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210219788\/delayed\" class=\"positive\">+1.05%<\/bg-quote><br \/>\n       were also up.<\/p>\n<p>European stocks<br \/>\n        SXXP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599654\/delayed\" class=\"positive\">+0.28%<\/bg-quote><br \/>\n       climbed at the start of the week as the positive sentiment spread to the continent, but the U.K.\u2019s internationally-exposed FTSE 100<br \/>\n        UKX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598409\/delayed\" class=\"negative\">-0.07%<\/bg-quote><br \/>\n       failed to join in as the pound<br \/>\n        GBPUSD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210561263\/realtime\/sampled\" class=\"positive\">+0.67%<\/bg-quote><br \/>\n       rallied 0.6% to $1.2995 despite \u2018no-deal\u2019 Brexit fears.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"The_buzz\"><\/span>The buzz<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Tesla<br \/>\n        TSLA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203558040\/composite\" class=\"negative\">-2.05%<\/bg-quote><br \/>\n       and Netflix<br \/>\n        NFLX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202353025\/composite\" class=\"negative\">-2.05%<\/bg-quote><br \/>\n       \u2014 two of 2020\u2019s hottest companies \u2014 will look to keep their momentum going in a big week of earnings for investors.<\/p>\n<p>Advance orders for Apple\u2019s<br \/>\n        AAPL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202934861\/composite\" class=\"negative\">-1.40%<\/bg-quote><br \/>\n       latest iPhone 12 model reportedly sold out on Chinese e-commerce retailer JD.com<br \/>\n        JD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205122565\/composite\" class=\"positive\">+1.58%<\/bg-quote><br \/>\n       in just three days.<\/p>\n<p>Trading was disrupted by a glitch at Euronext on Monday morning. It affected trading in Paris, as well as Belgium, Portugal, Ireland and the Netherlands.<\/p>\n<p>French food company Danone<br \/>\n        BN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205561941\/delayed\" class=\"positive\">+1.46%<\/bg-quote><br \/>\n       restored guidance for the full year and laid out a reorganization of its structure as it reported falling sales in the third quarter. The stock rose 1.4% in early trading.<\/p>\n<p>The door is \u201cstill ajar\u201d for post-Brexit talks with the European Union if officials in the bloc change their stance on key points, British cabinet minister Michael Gove said Sunday. <\/p>\n<h4><span class=\"ez-toc-section\" id=\"Random_read\"><\/span>Random read<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Scottish pubs warned of <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.edinburghnews.scotsman.com\/health\/coronavirus\/scottish-pubs-warned-fake-funerals-being-used-excuse-drink-indoors-3006807\" class=\"icon none\">fake funerals<\/a> to get around COVID-19 rules.<\/p>\n<p><strong>Need to Know starts early and is updated until the opening bell, but\u00a0sign up here\u00a0to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.<\/strong> <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Callum Keown\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Callum_Keown\"><\/span>Callum Keown<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=21004575-02D4-D4B5-4572-D92EBD63B534&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Why the \u2018dot-com bubble on steroids\u2019 can keep going a while longer, strategists say &#8221; If a financial bubble is indeed brewing, it may continue for longer than many expect, TS Lombard strategists said. AFP via Getty Images Stocks are being driven higher at the start of the week by the same old hopes&#8230;<\/p>\n","protected":false},"author":1,"featured_media":92455,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-92454","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/92454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=92454"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/92454\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/92455"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=92454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=92454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=92454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}