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It’s Just the Facts Today. Very, Very Alarming Tech Market Facts.

August 5, 2016

Here it is everyone… just the facts.

Here are the past 5 years of the S&P 500 and NASDAQ. They are up 85% and 108%, respectively:

Here are the past 5 years of the SPDR Morgan Stanley Technology ETF and Vanguard Information Technology ETF. They are both up 100%:

Here are the past 5 years of FANG stocks. Facebook (up 294%), Amazon (up 260%), Netflix (up 872%), Google (up 165%) stocks gains:

Here is the past 5 years current top 5 market cap leaders. Apple (up 100%), Google (up 78%), Microsoft (30%), Amazon (up 280%), Facebook (up 229%) gains:

What do we notice here…?

If we average the past five year gains of the S&P 500, the NASDAQ, SPDR Morgan Stanley Technology ETF, Vanguard Information Technology ETF, Facebook, Amazon, Netflix, Google, Microsoft, and Apple, then we get: 211%

That’s right, an average gain of 211% over the past 5 years.
(This does not take into account market cap or any other types of values… just the 5 year average gains of those 10 indicators.)

Could we continue to see massive gains in the tech industry? For sure. We could see these values skyrocket even higher.

However, there will be a day of reckoning in the tech industry, just as every industry peaks and dips through their respective cycles.

Remember the concept of walking away from the poker table. Know when you are up. Know when it’s been a good run and it’s time to end the night.