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Phil Rosen points out that tech stocks are currently trading at unusually low valuations relative to the S&P 500. The last time this valuation gap appeared was in 2019, when Nvidia's market cap was just $144 billion. Today, Nvidia's market cap is approaching $6 trillion.
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Earlier this year, Phil Rosen observed that the Magnificent 7 group may underperform the S&P 500 for the first time since 2021. He also reported that the S&P 500 had risen 13% even as the 10-year Treasury yield hit a 19-year high. These developments come as tech sector valuations approach their lowest levels relative to the broader index in years.