The anti-tech-bubble argument, in one chart.

For about two decades, corporate profits in information and computer/electronics manufacturing moved in a pretty narrow range: around 0.8% to 1.2% of GDP.

Now they have broken out to almost 1.8% of GDP — the highest level ever. And most of that increase happened in just the past two years.

There is a lot of talk about a tech stock bubble.
Maybe. Bubbles are always possible.

But the simplest bubble story is that stock prices are running far ahead of the fundamentals.

That is harder to argue when profits are rising so fast.

Source: BEA