Yes, We Are In Another Tech Bubble -Real Investment Advice
"Technology has touched our lives in so many ways, and especially so for investors. Not only has technology provided ever-better tools by which to research and monitor investments, but tech stocks have also provided outsized opportunities to grow portfolios..Just as glorious as tech can be on the way up, however, it can be absolutely crushing on the way down.
...The latest fright came from US technology giants Amazon and Alphabet after their revenue misses last week. Both are highly successful companies but the immediate market reaction to their results suggested how wary investors are of any sign that their growth trajectories might be flattening....The technologist and futurist, Roy Amara, captured the essence of that route with a fairly simple statement: 'We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.' Amara’s law/ the hype cycle is illustrated in this graph....Amara's law describes the dotcom boom and bust of the late 1990s and early 2000s to a tee....In sum, tech stocks create unique opportunities and risks for investors. Due to the prominent role of inflated expectations in so many technology investments, however, tech also poses special challenges for long term investors....The only sensible course is to be wary of the initial hype but wary too of the later scepticism."