There are five key questions for investors looking at the heavily concentrated rally in stocks this year.
Though recent commentary points to artificial intelligence as the catalyst for the current tech stock surge, BofA chalks ut up to a few other factors as well.
But while that period ended in consolidation and some steep losses for investors, the current tech rally differs in an important way.
Today's top seven firms are much bigger than many tech firms in 2000, which signals that they can afford to deal with stiffer regulation.
Investors can expect opportunities to broaden beyond the seven mega-cap stocks, and valuations for the equal-weighted S&P will exceed them.
Persons:
—, BofA, Bubbles, COVID
Organizations:
Service, Bank of America, Nvidia, Meta, Microsoft, Apple, Big Tech, Tech, Investors
Locations:
Wall, Silicon