Downtown Josh Brown

So in the long term, and by long term, I mean, again, over the course of a year, which is generally my time horizon, it will be what will matter the most will be earnings, right?

So you will get, I'm sure you'll get

more volatility or at least idiosyncratic volatility, maybe not at the highest level of the market for a time from an absorption perspective.

But I think that that might be more short-term than you think, which is, like I said, go back to the rebounds that we have.

Again, this is a little bit of a different issue, but we've seen rebalances like that that are sizable before in Russell versus growth and 2000 go into sort of the mid-cap.

And all of that, yes, there are absorption issues over the short-term, but

But over the long term, and again, just a one-year time horizon, earnings is going to be the driver.

And that will ultimately be the determinant.

Yeah.

Non-profitable tech.

So, yeah, I did an interesting piece on this for Risky Tech.

And because there's a lot of charts making the rounds, if you do like top quartile beta, right, or highest beta stocks within S&P technology, they were hitting all-time highs.

And like the inflection was very similar to what we saw in 2000.

The interesting part about that is when you sort of rebase it for relative to the S&P 500, they've actually lagged broader tech.

And the funny part is, and I had this chart.

So if you just look at high beta tech versus tech, it's been in a downtrend since the 90s.

Like you generally don't want to own risk.

And it sort of oscillated right back to the top of the range.

So you'd say it worked in the way that it's worked other cycles.

And you would say there's nothing anomalous to see here relative to the rest of technology.