Tech profitability has reached historic levels: Profit margins for Technology, Media, & Telecom (TMT) stocks are now above 20% for the first time in history. Margins are now up +8 points over the last 3 years. Tech profit margins have also significantly diverged from their historic trend, which is currently running at ~15%. By comparison, profit margins of stocks excluding technology peaked in 2021 and have fallen to ~8%. This is even below the 2007 peak before the Financial Crisis started. As a result, tech profit margins are now ~2.5 TIMES higher than non-tech. The market is all about tech.(The Kobeissi Letter)