Are we experiencing Tech Wreck 2.0 similar to Tech Wreck 1.0 of the early 2000s? That's unlikely. The S&P 500 IT sector's market-cap share soared to a record high of 32.9% during March 2000.
The problem was that the IT sector’s earnings share of the S&P 500 peaked at 17.6% during September 2000. As a result, the sector’s earnings valuation multiple, based on 12-month forward earnings, soared to a record high of 48.3 during March 2000.
