Tech stocks experiencing a pullback

Tech stocks, particularly in the technology sector, are starting to underperform compared to other parts of the market, indicating a potential trend of decreased performance in the sector. This shift can be attributed to factors such as crowding in 60-40 portfolios, the movement of discount rates and interest rates, and the questionable valuations of these companies. Concerns arise due to the lack of significant growth in these so-called growth stocks, leading to a potential downward adjustment in their present value. With these concerns in mind, there may be better investment opportunities available in other areas of the market.