Tech On Edge:
“Disasters have a way of not happening”. That was a quote from legend Byron Wien. I am referring to this quote because I am seeing an avalanche of bearish sentiment surrounding technology. And yes it is deserved, but the depths of which I hear that the group may plummet to seems a bit overstated. As I have stated I think it would be a good achievement for the XLK to simply have an up year in 2021 (XLK up better than 3% currently YTD), after the huge returns in 2019 and 2020. That would be healthy, and a prudent pause. But when one trades the averages, one gets average returns, and that is where the skill of stock picking comes in. There will be slices of technology that underperform and there will be areas that excel. Semis over software is a theme that could very well play out. “Old tech” versus new tech has been working. I am not here to be a cheerleader for tech. It has been a laggard and registered a nasty reversal today, but do not count on the group staying that way for an extended period of time.