Technology is going up, up and up. Many see this as a good sign.
An article I read, stated that all the "big institutions" are loading up on these high flyers and it would be wise for individuals to follow in their footsteps. This is a classic example of the herding effect. "Since everyone else is doing it, I should be doing it too!"
Here are the price earnings (PE) of a few: WDC- 82, NVDA - 52, INTC -27. To sustain those PE's, the growth better "keep on keeping on"!
Does anyone remember the "Dot Com crisis", the "Housing crisis", and "Portfolio Insurance debacle"? If they did, they would remember the ensuing downside which was ever so painful. Many have to learn for themselves what it is like to put their hand into a hot flame. Hopefully, the scaring will not be too bad.
I prefer not to be "running with the bulls" in this one. I'll just sit back and watch!
