Here is something that weighs on our mind:
Our experience says this is a warning, as accurately presented by Micheal A. Gayed. Our concern is that this only implies one scenario, the tech sector ultimately crashing as the other half already have.
An alternative prospect is that the lagging sectors skyrocket without the tech sector falling. This is typically a warning of a coming crash.
The rationale is that investors might follow the advice of Garzarelli and “Buy Catch-Up Indexes.” Investors typically buy these indexes because they have failed to be in the initial runup in the tech stocks. Seeing all the gains and missing out, they attempt to make up for lost time.
This was best represented by buyers of gold in Japan in January 1988.
Note how buyers went on a spree in an attempt to make up for lost time. We all know how this was resolved.