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Tech stocks have roared past the broader market this year, but political risks and a changing economy could close the gap, according to a new note from Citi.
The bank’s analysts identified six risk factors for the dominance of tech stocks, but pointed out that they are not calling for a bubble to burst but instead a regression to the rest of the market.
“We have stressed on numerous occasions that this is not a replay of 2000-02, with a market meltdown impact, but relative underperformance is plausible heading towards 2021, especially given the crowded nature of tech investing already,” the note said.