Beyond recent volatility in U.S. tech stocks, a turn in the trend could “get real” in Europe. Here’s an excerpt from the August 2024 Global Market Perspective:
The chart shows ASML, Europe’s largest technology company by market cap. That monthly range bar on the far right barely shows up on the long-term graph, but it actually represents a 10-day valuation drop of more than €70 billion! After peaking at an intraday high of 1022 on July 11, prices wobbled for three trading days, gapped lower on July 17, and are off 20% as we go to press.
We strongly disagree with the narrative that investors should be adding exposure to tech … or have exposure to tech at all for that matter. Europe’s tech craze may be less pronounced, but ASML’s stock price appears to be another classic case of runaway expectations in the face of deteriorating fundamentals. A YouTube commenter on the ASML video wrote “just got my first share for under 1000” and even included a smiley face emoticon. We can only imagine their delight when shares can be had for less than 100. 🙁
Global Market Perspective includes charts and specific forecasts for dozens of financial markets worldwide. Get the August issue on your screen in moments. Follow the link below to begin.