Interesting market note from Ned Davis Research. (I can't afford a subscription, but since I had a free trial once, they send me stuff from time to time)

They note that the Technology sector now represents 30.6% of the market cap weight of the S&P 500 now (highest since 2000). From 2002-2019 the fraction mostly hovered pretty consistently around 15.5%-16%, give or take a percent, so it has basically doubled from what was normal for a long time.

But profits from that sector are only 20.5% of the total. A gap is normal, but not normally that big: this is about the biggest gap since 2004. They suggest not being overweight "tech". Not a short call.

I suspect they are using the S&P sector definition, not a magnificent seven sort of list, but they dominate it so fully that maybe the distinction is moot.

Jim