Know Your Risk Podcast Tech Stocks are Underperforming
Jan 6, 2026
Zach and Chase examine the volatility plaguing tech stocks and discuss the underperformance of major tech megacaps. They highlight the implications of a weaker dollar on international investments and explore geopolitical factors affecting markets. The duo also dives into the robust trends in battery and industrial metals, underscoring their importance for electrification. Robotics innovations from companies like Boston Dynamics are showcased as key productivity boosters. Additionally, they analyze the potential impacts of a Ukraine ceasefire on the oil market.
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Volatility Has Become More Binary
- The VIX is unusually low near mid-teens but has become more binary between low ~16 and spikes above 30.
- Chase Taylor and Zach Abraham link this to expanded retail options and dealers' hedging compressing realized volatility.
Tech Breakouts Keep Failing
- MAG7 (big tech) has underperformed with repeated failed breakout attempts despite broadening market breadth.
- The hosts see rotation into non-tech names as partly driven by yield-curve moves and stretched earnings expectations for mega-cap tech.
Consider Adding International Exposure
- If you're concentrated in US equities, consider owning international markets given valuation and policy tailwinds.
- Chase Taylor recommends looking abroad because relative returns have shifted and a weaker dollar may be policy.