The following charts from the FT starkly illustrate again how Tech dominates the global stock-markets, and what an extraordinary era of value creation has occurred in the last 8 years. Sceptics will fairly question whether this is a sign that prices are overheated.
However, as the bottom chart shows, comparing valuation multiples of Tech from the end-90's bubble to now, the difference is clear - Tech stocks are now making vast amounts of profit.
Eight of the world’s most highly valued companies are technology businesses. The combined market capitalisation of these companies is $4.7tn. That is 30 per cent of the combined market capitalisation of the other 92 companies in the world’s 100 most valuable firms.