“Bank of America Merrill Lynch strategists said with the decline in share prices, the valuation of S&P 500 stocks has fallen to a level last seen in late 2016. That is based on the forward price-earnings ratio, which BofA says is now 17 times, still 11 percent above its long term average,” according to CNBC.

Technology is not the only sector that is richly valued. Consumer discretionary, home to Amazon and Netflix, “is now trading at a 22 percent premium to the market, well above its historic 9 percent premium. As prices rose for discretionary stocks, earnings per share for the sector have fallen since late 2016,” reports CNBC.

For more information on the tech sector, visit our technology category.

Tom Lydon’s clients own shares of QQQ, Apple, Facebook and Microsoft.