Look at the valuation of technology stocks relative to the nontechnology stocks that have similar growth characteristics, which is growth of 20percentt or more.
Keynes, of course, was talking about stocks in general, but his words seem particularly prophetic given the bull market's valuation of technology stocks.
This chapter highlights the valuation of technology stocks whose ultimate value is linked to the growth of the Internet and the World Wide Web.
His focus on trading a diverse basket of currencies and hedging contracts looked lackluster compared with the soaring valuations of technology stocks.
Similarly, millions of Americans became convinced that the market went only up and that the valuations of technology stocks could stay in the stratosphere indefinitely.
But the recent valuations of technology startups highlight the counter-intuitive nature of investment decisions, especially in the case of companies that have yet to generate any revenue.
But as the stock market valuations of technology companies began to drop last summer, so did the market for initial public offerings.
Tech knockoutIt was another bad week for high-tech shares, as investors' doubts about the high valuations of technology companies grew.
"History shows that the winning group in the last bull market is seldom the winning group the next time," Mr. Gipson said, citing valuations of technology stocks as particularly stretched.
Given the low market valuations of technology companies, some analysts said they had expected Tyco to buy an electronics company, a computer maker -- just about anything but a commercial lender.
If they stayed calm, investors would realize that a year of depressed earnings doesn't justify a big fall in stock valuations, especially not the valuations of technology companies whose big profits will come, if they ever do, some years in the future.
