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‘It reminded us so much of 1998 – the end of the’ 90s’
”
That’s Chris Harvey, head of equality strategy at Wells Fargo Securities WFC,
talks to CNBC about Tesla’s TSLA,
recently introduced in the S&P 500 SPX,
in memory of the last days of the dot-com bubble. In particular, Harvey, in clarifying Well Fargo’s top 10 predictions for 2021, drew a comparison between electric car company Elon Musk and AOL, a poster child of the internet frenzy decades ago.
“AOL’s game-changing technology, like Tesla’s, had incredible performance … it will go into the index late in the year in December after an incredible run,” Harvey said. “But it was a positive event. ”
After its relentless rally in the late 1990s, AOL, like many causes of the dot-com bubble, failed to keep up with the times, which threaten Tesla, up nearly 700% this year. , also to be seen in the coming year, he explained. “After ’99, many technology and growth companies lost 50% to 100% [of value], ”Harvey said. “We think in 2020, everything will happen much faster. So, if it took 12 months for the end to start, it’s now going to take six months. ”
For Harvey, better places for investors are looking at the introduction of cyclical names, “COVID-beta”. “An old economy, not a new one,” he said. Here is CNBC’s full list of full listings:
For more on Harvey’s views on Tesla and 2021, check out the interview:
Tesla shares were moving lower ahead of Monday’s opening bell, while the Dow Jones YM00 industry average futures,
tech-heavy Nasdaq Composite NQ00,
and S&P 500 ES00,
they all marked a good start to the week.