Bloomberg Intelligence's 'Equity Market Minute' 11/17/2022

Gina Martin Adams discusses the significant derating of tech stocks in 2022, highlighting their high valuations compared to the S&P 500. Despite a 24% premium, tech stocks are overvalued given current interest rates and earnings trends. The tech sector is experiencing earnings declines and is expected to underperform the S&P 500 until mid-2023.

What factors are contributing to the potential further decline of tech stocks in 2022?

• Low inflation rates

• High interest rates and relative earnings trends

• Increased consumer demand

• Government subsidies

How does the valuation of tech stocks compare to the S&P 500?

• Tech stocks are trading at a premium

• Tech stocks are trading at the same level

• Tech stocks are trading at a discount

• Tech stocks are undervalued

What is the premium percentage of tech stocks when Microsoft and Apple are excluded?

• 10%

• 17%

• 5%

• 24%

What is the expected trend for tech stock earnings compared to the S&P 500 through mid-2023?

• Tech stocks are expected to match the S&P 500

• Tech stocks are expected to outperform

• Tech stocks are expected to have no change

• Tech stocks are expected to lag

What is the current trend in tech stock earnings on a year-over-year basis?

• Earnings are unpredictable

• Earnings are stable

• Earnings are increasing

• Earnings are declining