As Tech Stocks Rally, Risk Rises. Why Energy and Healthcare Could Be Options.
1. S&P 500 tech sector expands to 34.5% market cap, bolstered by NVDA. 2. Nvidia constitutes 8% of S&P 500’s total value, indicating dominance. 3. Tech stocks trade at high price-to-earnings ratios, suggesting potential risk. 4. Surging capital spending in tech could affect profit margins adversely. 5. Investors considering diversification into lower-valued sectors like healthcare.