The nearly seven-year-old bull market has shown its first major signs of weakness in 2015, as investors have begun to grow uneasy about high share prices, emerging market stability and weak commodity demand. With the S&P 500 now sitting more than 30 percent above its pre-Financial Crisis top, traders can’t help drawing comparisons to previous market peaks.
In a new report, MKM Partners analyst Jonathan Krinsky compared the size and dominance of a handful of tech companies to a similar situation that developed in U.S. markets during the height of the Dot Com Bubble in the late 1990s.
The Four Horsemen Of The Dot Com Bubble
While the Dot Com Bubble notoriously involved hundreds of nearly worthless companies with elevated market valuations, not all of the high-flying stocks were simply smoke and mirrors. At the market’s peak in March of 2000, Dell, Cisco Systems, Inc. CSCO 0.88%, Intel Corporation INTC 0.47% and Microsoft Corporation MSFT 1.3%, collectively referred to as the “Four Horsemen” of the tech world, had a combined market cap of about $1.7 trillion.
Krinsky pointed out that these four companies were single-handedly supporting the U.S. markets at times.
The Rise Of F.A.N.G.
In today’s market, the tech world is…
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