Excerpt from Bloomberg quoting DataTrek’s Nick Colas:

…. “Still, tech’s market dominance has raised some eyebrows. Should Facebook Inc., Amazon.com Inc. and Google’s parent Alphabet Inc. be categorized as technology in the S&P 500, rather than communications or consumer discretionary where they currently belong, the tech industry’s index representation would have increased by roughly 10 percentage points to 37.5%, according to DataTrek Research. That’d exceed the industry’s peak weight of 32.5% during the internet bubble.

That big of a share would not only be the largest for technology itself, it would also exceed all other sectors since at least 1980. The closest industry peak weight, DataTrek found, was 29% from energy in December 1980.

“If prosaic oil companies were once 29% of the S&P, why can’t innovative tech one day be 50% of the index?” DataTrek’s Co-founder Nicholas Colas wrote in a note. “Yes, at that point I think we’d all agree tech would be in a bubble just like energy was in 1980. But we’re not there yet”….

Read the full article here on Bloomberg!