Taps Coogan – December 9th, 2021

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The following chart highlights the year-to-date performance of the Nasdaq minus the five largest companies by market cap as of December 6th, via MajorTom.

The punchline is that tech stocks have been in a bear market with lower lows and lower highs since January. The only saving grace for the headline index has been Apple, Microsoft, Amazon, Alphabet, and alternatively Tesla or Facebook. What separates those companies from many other tech companies, is actual profits and free cash flow (Yes, Tesla too).

Analysts tend to point to a ‘thinning’ market like this as a sign of weakness. But then again, people have been ringing that bell for years and years, so who really knows…

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