• BANK OF AMERICA: ‘This is not your parents' tech bubble'

    1 month ago - By Business Insider

    For stock enthusiasts, drawing parallels between the current market and the dotcom bubble is a pretty common activity.
    But Bank of America Merrill Lynch doesn't buy into those comparisons at all.
    In their mind, the tech-driven stock rally is far more stable this time around - and the reason stretches far beyond valuation.
    "This is not your parents' tech bubble," BAML chief US equity and quantitative strategist Savita Subramanian wrote in a client note.
    The firm cites the robust levels of cash held by tech companies, which should only grow if President Donald Trump 's proposed repatriation...
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  • The stock market is relying less on a handful of stocks to do its heavy lifting

    The stock market is relying less on a handful of stocks to do its heavy lifting

    1 month ago - By Business Insider

    Big stock market returns are usually powered by a handful of large companies. Lately, that's been the so-called FAANGs: large tech companies like Facebook and Alphabet .
    But the biggest companies' contribution to earnings and sales growth - the most important drivers of the bull market - has been falling since 2010, Morgan Stanley found. Instead, earnings growth is becoming spread out among more stocks.
    The implication of lower concentrations for earnings and earnings growth is positive for investors: one big company's miss is less likely to send a shockwave through the rest of the...
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