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- ⚠️CHART OF THE WEEK: Is the US tech bubble bursting?
⚠️CHART OF THE WEEK: Is the US tech bubble bursting?
Technology stocks are experiencing historic underperformance
Global Markets Investor
March 07, 2026
In partnership with
GLOBAL MARKETS INVESTOR’S PORTFOLIO IS 🔥UP +97%🔥SINCE JANUARY 2024
DURING THE MARCH-APRIL 2025 MARKET TURMOIL, MAJOR US INDEXES FELL NEARLY 20%, WHILE THE GMI PORTFOLIO GAINED OVER 5%, FIND OUT HOW BELOW:
Information Technology makes up 32.3% of the S&P 500, down from a peak of ~35% just a few months ago.
By comparison, Materials and Energy combined represent 5.5% of the index, near the lowest on record. However, the weighting appears to be picking up.
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As a result, the gap between the two is ~27 percentage points, near the widest in over 30 years. During the Dot-Com Bubble, IT sector peaked at ~35% before crashing to ~15% over the following 2 years.
Meanwhile, World tech equities are underperforming other stocks by ~7 percentage points, one of the worst starts to a year in history.
Tech relative performance is now tracking in the bottom 10% of years since 1973.
Historically, the median outcome by year-end has been +4 percentage points of outperformance for tech.
In fact, the last time tech underperformed this badly was during the 2000 Dot-Com Bubble.
Will the underperformance continue for years?
Full analysis regarding this topic can be found below.
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