US tech stocks got hammered on Monday.
Apple lost 2.5 percent while Alphabet (Google), Facebook and Microsoft were also down.
The value of American technology stocks has skyrocketed to its most expensive level since 2008, in terms of price-to-earnings ratio.
US tech stock fears spilled over to the JSE as Naspers closed down 5.89% to R2525 per share.
What is going on?
The Money Show’s Bruce Whitfield interviewed Vestact MD Paul Theron.
Listen to the interview in the audio below (and/or scroll down for quotes from it).
Today those stocks are up sharply! You [Bruce Whitfield] should be embarrassed for phoning me!— Paul Theron, Vestact
It [the drop in value of tech shares] has to do with loss aversion.— Paul Theron, Vestact
These are wonderful companies! They’re going up because they deserve to go up!— Paul Theron, Vestact
YouTube is grabbing eyeballs like TV used to in the past.— Paul Theron, Vestact
Tencent is a brilliant, brilliant business!— Paul Theron, Vestact
Naspers trades at a level that grossly underestimates its stake in Tencent.— Paul Theron, Vestact
If you can buy Naspers today at R2525; it’s a wonderful bargain!— Paul Theron, Vestact
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