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As tech stocks in the US continued to earn a premium in 2020, when the outbreak hit prices, a warning balloon came from the famous US investor.
Greenlight Capital’s chairman of the board, David Einhorn, said in a note to his clients that tech stocks are in a big bubble.
In Bloomberg’s note, Einhorn said: “Our contention is that the tech bubble that saw the September 2 summit has already burst.”
Einhorn also drew attention to the trend that defined the public supply craze in the United States. Claiming that the market for small stocks or some sectors has become significantly concentrated, Einhorn said the unusual valuations and “staggering” transaction volumes are indicative of the bubble.
This year, tech stocks stood out in the upward momentum of markets in the US. Since the beginning of the year, the Nasdaq index in the United States has gained 33%. On the other hand, the increase in the S&P 500 index remained at the 5% level.
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