High valuation risk under capital surplus begins to show
ANBOUND
After Goldman Sachs's tech stocks risk evaluation, the crash of tech stocks has spread worldwide, even if there is no huge tech stocks bubble, its bullish market that lasted for half a year has come to an end. Tech stocks investment space has become saturated, and it is facing downward pressure. Anbound’s chief researcher Chan Kung pointed out that the capital over chasing for technology companies are also accumulating risks in the era of capital surplus, capital chasing for technology industry is a common phenomenon. As the capital hastily looked for a way out, a large number of the capital rushed to the technology industry, which resulted in the overvalued of its stock market. Tech stocks crash has demonstrated its risk. It is not certain how long the US stock market adjustment will last, but once the reversal really happened, the results would be disastrous.