Tech Wreck On Deck?
Technology is no doubt the focus of all investors. Semiconductors and software garner most of the attention, and they are feeling the pain at the moment. Remember every company is either a technology company in some capacity, is trying to become one, or does not know the benefits of doing so. Since 2007 on the chart below, surprisingly it was never the best major S&P sector performer in back-to-back years until 2019-20. Information technology must be given credit for only one down year in the last 14, in 2008 when it plummeted more than 43%. Taking a closer look curiously it either participated in a big way (four times information technology was the best major S&P sector actor on a YTD basis since 2007) or never finished second or third best. The year of 2021 seems to be doing just that, with an even less than mediocre performance up just 5% YTD, besting just the consumer staples group. Prudent pause for an extended period of time, perhaps into year-end, looks like best-case scenario.