i was in the audience when david einhorn unveiled his first bubble basket. it was in 2014, in april of that year we're talking about six and a half years ago and amazon was in his bubble basket, he was shorting the stock. let's look at what happened since. first of all, the whole xlk is up 250%, blowing the doors off any other sector in the market by far second, amazon is up about 850% and i know that he didn't remain shorted the whole time, thank god, but am sfwlonazonmazon's ee up 6,000%. earnings on a trailing 12-month basis have grown substantially since then everything that you're siaying generally speaking about the, quote, second tier technology companies he could have said six years ago and did. >> he does in this letter admit they were wrong in 2016 when they identified what they thought was the bubble you cite 2014. he does admit they were wrong and looks at the environment that it exists today and says not on is it a bubble, but it's an enormous tech bubble. i bring you the rise in stocks of some of the ones that we mentioned as to why perhaps he'

investor david einhorn believes stocks are in a bubble. he says the tech bubble is defined by lack of regard for and the top may have already occurred. great to have you with me as always. let's just stand back for a moment. everyday i try and ask a new question about politics, covid, and physicals. -- fiscals. do you get the sense markets are at the foothills of a reappraisal of risk? what are we reassessing? is it politics? fiscal? covid? what is the most important narrative? let me start with what has been least important. the fiscal. fiscal stimulus is coming after the election. it is more of a timing issue than not getting any at all. the far more important is the covid situation and of course the election next week. covid you have gone through the news we are getting across europe. it is the pickup in death rates we are focused on. it is going to start changing individual behavior. there has been this perception of the second wave being less dangerous. .he data does show that nonetheless, with the death rate picking up, it is going t

sophie, david einhorn warning of this tech bubble. what exactly is he saying? his latest letter to there is saying yes, an enormous bubble, pointing signs to mania in the ipo space, market concentration, lost evaluations, ramp-up in -- intech trading and participation of retail investors. he has added short bets of mostly second-tier companies and recent ipos trading at what he calls remarkable valuations. we did have einhorn calling a tech bubble in 2016, which he said was premature, but this time, he says this is the real mccoy. flipping the page, he thinks the bubble has already popped with september 2 marking the top for tech. a hypothesis he conceives may be disproven but he expects a shift in psychology from greed to complacency, from worry to panic. panic, thereg of is a distinct lack of the market ahead of the u.s. election. perhaps investors getting complacent. sophie: yes, for all the talk about this being a contentious u.s. vote, we have seen the jp morgan gauge of global volatility set by the biggest multi-drop since may. that is compared to the equ

week for big tech and this tech has been one of the best performers amid the pandemic investor david einhorn he's calling the current situation a huge tech bubble that actually popped on september 2nd 2020 in early september but is it really the top or sentiment just really shifting from greed to complacency with tech. well 1st of all let's just take a look at it from a technical perspective monday there was a huge range expansion in all of the indices and the nasdaq and give to kill are close underneath a key moving average which a lot of traders look at the 50 day moving average so to answer the question whether or not we topped what makes it even more interesting is that today the price action was inside the range of yesterday so that generally spells indecision which makes a lot of sense so as far as just looking at it from a technical perspective if we break down to monday's lows let's say on wednesday we will see follow through how much follow through remains to be seen now in terms of the whole tech sector right now considering netflix reported last week and was disappointed in terms

lisa: david einhorn of greenlight capital yesterday going on the robinhood conference, said that tech was in a bubble, that it probably already peaked in september, and that he is shorting certain overpriced ipo's, as well as other more peripheral tech companies. are you getting on that train? troy: we don't have a lot of tech exposure right now. is really not a bubble, per se. it is nothing like the late 1990's. we are in a period where the strong tech names are very good businesses and continue to grow margins for the most part. but you do have very elevated valuations. when the s&p is at 23 times forward earnings and the nasdaq is multiple points higher, that sets you up for near-term weakness. but in terms of having some significant bear market over the short term, we think it is unlikely. with all the spec to mr. einhorn, we could be in for a prolonged correction, but nothing like we had in 2002. we just think that is very unlikely. you have to be very careful if you are over your skis in terms of tech exposure. the next two or three months could be really painful. jonathan: i th

some like david einhorn suggest tech is in an enormous boubl and september 2nd was the top and it's already popped and we're witnessing the way they're trading and apple is in a bear market and some think it has further to go to the down side what do you think? >> with the benefit of hindsight they were expensive and now they're less expensive but i think we're still looking at zero interest rates for the foreseeable future no matter what happens in washington on november 3rd, j jerome powell will still be fed chair and interest rates will be near zero. i think the fed will come in and peg the bond yield so i think it's going to be pretty hard for anybody to really be out of the market for very long or least not jump at opportunities. i view this more as an opportunity than a reason to panic. i don't agree this is a bubble technology has a great future over the rest of the decade. >> kate moore, that's interesting what ed said, to look past everything and don't forget what got you here don't leave your dance partner, kate moore, on the sidelines it's the fed the music's not stopping any tim

today we have david einhorn talking about a tech bubble, he calls it enormous bubble.eel about that? if virus cases continue to rise, why should the playbook be different? isaac: it is a fair comment. tech has been reading this rally, and there is a reason for that, not least the business model has benefited more than others during the pandemic. the other is low interest rates naturally push up the valuation of stocks. that does not mean it is a bubble. we think valuations look reasonable, not too stretched. it also does not necessarily follow that tech will be the leader of a rally for the medium term or near term. what is really critical to look out for is that value premium which has disappeared, and value stocks and cyclical stocks in financials underperformed badly over the recent period. that could change. when value performs, when that valuation premium comes back, it tends to come back rapidly and powerfully, and the driving force behind that historically is a steepening of the yield curve. that has always happened after a recession and during the recovery. we

such a big impact on the private markets that you live in, i do want to read you a quote from david einhorndst of an enormous tech bubble, working hypothesis which may be disproven that september 2nd was the top of the bubble, and it is already popped what do you think of that? >> you know, the tech valuations have gotten to be quite high in the public markets that's why everyone is trying to do this now, the public markets, first time in a while, seem to be ahead of privates i tend to think this tech is like venture, some tech, it is vastly undervalued it is going to change industries and you see a lot of public companies about standard value and similar to other times, like venture, not like these things go down 80% it is a risky thing. you better know your companies well >> real quick though, what is overvalued in the public markets in your mind and what is undervalued? >> you know, there is a lot of stuff tied to e-commerce brands in that people think because this year is going so well, they're going to keep doing that forever. i would be very careful to really only own platforms there,