Megacap Tech has has rallied this market for several years.
However, one has to begin to question their valuations.
Apple is a great company and likely will be for decades to come.
However, prior to the pandemic, iPhone sales were beginning to slow.
There is now a report that Apple will slow production of the iPhone by 10-12m units, yet the stock rose strongly today.
Given the megacap valuations, it may be fair to see the megacap stocks take a pause.
So are we going to end the rally and miss all time highs?
Well, I think the "cheap" stocks which have been beaten down as megacap rallied may continue to churn higher and prop up the market.
Energy and Bank stocks seem to benefit from rising rates and are very cheap.
So if they are in a favorable environment, they may be able to add points to the index and continue to propel it higher.
We'll see what happens.
