As I told you last Friday, Technology stocks have been a great source of stock price appreciation since the market bottomed on March 23.
I’m sure we all have a collection of investments in the technology sector throughout our portfolios, and I’m sure you’re quite happy with your returns.
As I told you last Friday, The Information Technology Index returning a whopping 39.7% over the trailing year. And that includes the drop in September of 12.1%. One of the challenges is the fundamental valuation of the average underlying companies in the tech sector.
S&P Information Technology Index Price to Earnings, Price to Book & Price to Sales — Source Bloomberg Finance, L.P.
Many in the stock market continue to be laser-focused on technology stocks. The idea is that placing bets on tech makes for better returns, even if fundamentals are ignored along the way.