Investing – Societe Generale strategists issued a warning to growth-focused investors about the possibility of a bubble burst in the US technology sector.
The banking giant highlighted the significant market capitalization of US Tech within the S&P 500 and pointed to the recent surge in smaller stocks contrasted with a decline in larger tech companies, including the ‘Magnificent 7’ mega-caps.
“With the US Tech sector now accounting for some 35% of the S&P 500 market cap, investors need to be on high alert for a potential bursting of the bubble,” Societe Generale global equity strategists wrote in a note.
The commentary from SocGen’s team of analysts reflects concerns that the equity market may be on the verge of a downturn, reminiscent of the first full-blown bear market since the 2008 Global Financial Crisis.
