Am I the only one concerned about a bubble in tech stocks right now? I’ve gradually shifted to a more concentrated tech-heavy portfolio. As I’ve done so, my returns have been unusually good. I still have a fairly diversified portfolio of 30 stocks and a couple mutual funds (which I don’t sell to avoid capital gains taxes). Nevertheless, my top holdings have become fairly big, in large part due to their appreciation - AYX (11%), TTD (8.9%) and SHOP (8.4%) have had ridiculous gains over the past year despite the pull back last fall. They’ve returned 187%, 330% and 78% respectively. My #4 holding, ANET (8.3%), has “only” returned 21.3% over the past year but is up 77% from its low only 4 months ago.
Anyway, I’ve done unexpectedly well this year (up 43.7%) and I’m anticipating a pull back before too long. I just hope it’s temporary and not a longer term repricing of these stocks. Growth continues to be superb but any slowdown might have a large impact.
Any thoughts on when this might occur?