Bloomberg Intelligence's Equity Market Minute 5/04/2022

Gina Martin Adams discusses the tech bubble that emerged during the pandemic, noting it didn't reach the heights of the 1990s bubble but is currently deflating. The tech, media, and telecoms sectors' market cap share in the S&P 500 peaked at over 40% in August 2020 and is now at 36.5%, still above its earnings share of 32.5%. Valuations remain high compared to pre-pandemic levels, with the TMT Group trading at 19 times forward earnings. The video concludes with a summary of the current market situation.

How does the tech bubble during the pandemic compare to the one in the 1990s?

• It was larger than the 1990s bubble.

• It was unrelated to the 1990s bubble.

• It never reached the size of the 1990s bubble.

• It was the same size as the 1990s bubble.

What was the peak market cap share of tech, media, and telecoms in the S&P 500 during August 2020?

• 45%

• 36.5%

• 40%

• 32.5%

What is the current market cap share of tech, media, and telecoms relative to its earnings share?

• It is higher than its earnings share.

• It is unrelated to its earnings share.

• It is equal to its earnings share.

• It is lower than its earnings share.

How does the TMT group's trading multiple compare to the index?

• It is unrelated to the index.

• It is equal to the index.

• It is higher than the index.

• It is lower than the index.

What is the TMT group's trading multiple compared to pre-pandemic averages?

• Below pre-pandemic averages.

• Equal to pre-pandemic averages.

• Above pre-pandemic averages.

• Unrelated to pre-pandemic averages.