Bloomberg Intelligence's 'Equity Market Minute' 2/13/2020

The video discusses the strong performance of tech stocks in 2020, highlighting their significant returns compared to the S&P 500. It addresses investor concerns about market cap concentration and compares current valuations to those in the late 1990s, suggesting no bubble exists. The analysis includes graphs showing market cap concentration and earnings yield, indicating that tech stocks are not overvalued compared to historical standards.

What has been the performance of tech stocks in 2020 compared to the S&P 500?

• Tech stocks have outperformed the S&P 500 by about double.

• Tech stocks have shown no significant change compared to the S&P 500.

• Tech stocks have performed similarly to the S&P 500.

• Tech stocks have underperformed the S&P 500.

In the late 1990s, what percentage of the S&P 500's market cap was commanded by tech, media, and telecom sectors?

• About 30%

• More than 40%

• More than 50%

• Less than 20%

What is the current concentration risk in the top five stocks compared to the late 1990s?

• There is no concentration risk.

• It is significantly higher.

• It is about the same.

• It is significantly lower.

How do current valuation ratios of tech stocks compare to those in the late 1990s?

• They are exactly the same.

• They are less than half.

• They are about the same.

• They are more than double.

What does the current earnings yield for tech stocks suggest about the market environment?

• It shows no change from the late 1990s.

• It indicates a healthier market environment.

• It suggests tech stocks are overvalued.

• It suggests a bubble is forming.