Last year marked an excellent run for the stock market, with the S&P 500 index returning almost 27%, while the Dow Jones Industrial Average and the Nasdaq Composite returned 18.7% and 21.4%, respectively. The prices of numerous stocks also soared to record highs last year. However, the market rally has pushed many stocks to trade at valuations that are not justified by their fundamentals.
Tech stocks have been in the limelight since the COVID-19 pandemic hit. Investors’ interest in tech stocks has led to their prices soaring to way above their intrinsic values.
