Despite the market’s reaction to a recent Goldman Sachs research report, technology valuations are not likely to be lower anytime soon. On Friday, Robert Boroujerdi, a Goldman Sachs analyst, published a research report where he identified what he currently sees as a “valuation air pocket” in technology stocks. “This outperformance, driven by secular growth and the death of the reflation narrative, has created positioning extremes, factor crowding and difficult-to-decipher risk narratives (e.g. FAAMG’s realized volatility is now below that of Staples and Utilities),” Boroujerdi wrote. However, Boroujerdi forgets to mention how much the stock market has changed over the past 20 years, and how tough of a comparison this is to make to the dot.com bubble.Source