Bubble

U.S. Tech Stocks Are in a Bubble. Time to Shop for Growth Elsewhere.

This commentary was issued recently by money managers, research firms, and market newsletter writers and has been edited by Barron’s.

Insights
Richard Bernstein Advisors
Oct. 29: Investors become myopic during bubbles. They believe the universe of attractive investment opportunities is small and growth can be found only in a few select sectors. As we’ve repeatedly highlighted, it is exactly that narrow-mindedness that presents opportunities because investors ignore the broad range of potential investments outside the bubble.

Today’s bubbles are following that precedent. Investors are squarely focusing on technology, innovation, disruption, cryptocurrencies, and housing, but very little else. They seem enamored with vacations in outer space and electric vehicles, yet ignore the dire need for improving U.S. logistical and electrical infrastructure.

Ironically, many equity markets around the world not known as hotbeds of innovation and disruption are outperforming


Nasdaq Composite

index so far during 2021. Our guess is most investors are completely unaware of the fundamentals supporting these markets’ outperformance.

When Will GDP Perk Up?

THINK Economic and Financial Analysis
ING
Oct. 28: It’s clear that the U.S. economy entered a soft patch in the third quarter as the Delta variant of Covid spread across the country and led to heightened caution among households. The steep declines in restaurant booking and travel were a prelude to today’s soft 3Q GDP reading. Thankfully, Covid case numbers have fallen sharply since peaking in mid-September and we are seeing a rapid rebound in the willingness of consumers to get out and about and spend money.

We are confident that the fourth quarter will experience much better growth despite concerns surrounding the rising cost of living. The combination of strong labor demand amid a dearth of supply will keep incomes rising while households have extra resources to weather this storm due to the fact that nationally their wealth has increased by more than $26 trillion since the end of 2019.

Adding in anticipated government spending on infrastructure and social policy, more corporate capital expenditure, inventory rebuilding, and the return of foreign visitors in significant numbers means we feel the economy can expand by more than 4.5% next year.

Regional Powerhouses

Economic Commentary
Wells Fargo
Oct. 28: Florida’s strong economic growth is expected to continue well into the decade. After expanding 5.9% this year, Florida’s real GDP growth is expected to outpace the nation in the next couple of years, reflecting stronger population growth and the influx of higher-value-added jobs in technology, life sciences, and specialty finance. Employers are expected to add 273,000 jobs in 2022 and a whopping 300,000 jobs in 2023. Florida’s unemployment rate is expected to average 4.2% in 2022 but end the year below 4%. The strength in employment and income growth is expected to draw more job seekers to the state, which will also continue to attract large numbers of retirees, fueling home building and commercial construction…

We expect Georgia’s economy to gain momentum this fall and in 2022. After

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