David Einhorn: we are in a new Tech Bubble

"Pretty interesting comments from the latest David Einhorn letter.  The savvy hedge fund manager says we are indeed in a new tech bubble and has even formed an entirely new group of stocks in his fund that he has dubbed the “bubble basket”.   Here are some highlights from the letter:

“we have repeatedly noted that it is dangerous to short stocks that have disconnected from traditional valuation methods.  After all, twice a silly price is not twice as silly; it’s still just silly.  This understanding limited our enthusiasm for shorting the handful of momentum stocks that dominated the headlines last year.  Now there is a clear consensus that we are witnessing our second tech bubble in 15 years.  What is uncertain is how much further the bubble can expand and what might pop it.

at http://pragcap.com/david-einhorn-we-are-in-a-new-tech-bubble#j8EYgeMBoXg4h2h9.99