This analysis should be in everyone's mind.
The tech sector's outperformance compared to the broader market has never been more extreme.
As shown in the chart below, the ratio between tech stocks and the S&P 500 is now over 2 standard deviations above the historical mean.
During other times when this indicator also reached such high levels, the tech sector significantly underperformed in the following decade.
It's unlikely that this time will be any different.
When discount rates experience a structural increase, valuations become more important, particularly when fundamental growth becomes stagnant.