The conclusion here is not that traditional and defensive stocks are cheap but rather that tech and tech-related sectors have never been so inflated.
When finance is euphoric and its customers are depressed, something is fundamentally broken and unsustainable.
Current market conditions are so extreme that the masses believe they are normal and durable. Such assumptions have historically proven painful.
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A few charts to illuminate the start of another week.
First, another look at the record overvaluation in tech and tech-related companies (dark blue below via topdowncharts.com) versus the S&P 500 traditional cyclicals (light blue) and defensive sectors (black) since 1973. Again, the conclusion
