Gerstner says earnings are up 38% for major tech companies while the other 495 S&P stocks are down 5%.
“And if you look at if you take out those tech stocks, the other 495 earnings are actually down 5%.”
Gerstner cites ten-year data showing tech earnings compounded at 13% versus 6% for non-tech.
“But if you look at non tech, so if you take the S and P and you strip out all the tech companies, they've only compounded earnings at about 6%.”