Let me be blunt: Tech stocks are still alarmingly expensive. The Nasdaq Composite index is down about 8% from its peak earlier this year, and some well-known names have sold off by 20% or more. But tech’s losses generally have been modest—and many valuations remain stratospheric.
Toni Sacconaghi, a longtime technology analyst at Bernstein, encapsulated the dynamic in a fascinating piece of research this past week. He points out that, in 2020, investors seemed to be buying techs almost because of their high price tags. In fact,…
