Are Most Companies Technology Names To A Degree?
Willie Sutton a long time ago was asked why he robbed banks. Because “thats where the money is”, he declared. He could have easily been talking about technology stocks the last year and a half, as that is where “money” has flowed, as capital goes directly to where it is treated best. That is the reason why we have been focusing a lot within that sector, and it obviously with its performance has been producing ample opportunities. There has been a lot of recent chatter that rotation out of tech is forthcoming, and it could have already begun as although it is still easily the best behaved major S&P sector YTD, on a one and three month look back period, it is trailing materials and consumer discretionary. The lines of what is a “pure” technology company are becoming blurred, with the quote (thanks Will) “there are only 3 types of companies. Companies that are technology companies, companies becoming technology companies, and companies that are being disrupted by technology companies. And so every company in the world needs to go through this digital transformation to make sure they can produce good and services in a digital way.”