Summary
- Tech had a bumpy ride so far, but looking at year to date returns the sector is among the top-performing groups.
- Sales of internet software and wireless services were up 17.5% and 6.9% respectively in the last quarter from a year earlier, well above just-over 2% increase in general retail sales.
- Even though XLK, IYW, IGM and VGT have been moving sideways recently, they actually had a pretty good year so far, with around 10% YTD returns.
The information technology sector covers most makers and providers of computer, data and electronic equipment and services. This includes software, networking and telecommunications equipment manufacturers, IT consultants, and providers of Internet services, mobile phone producers and semiconductor manufacturers.
Generally, tech had a bumpy ride so far, but looking at year to date returns the sector is one of the top-performing groups, and I remain confident that IT sector will continue to outperform for at least the foreseeable future. This group definitely offers solid growth opportunities thanks to new products and services and continuing innovation. Increasing number of companies with in tech sector increased their dividend payments, which may become a larger part of total equity return in the near term. This gives an IT sector a defensive characteristic as well.
Click here to read more.
SOURCE: Seeking Alpha
Leave a Reply
You must be logged in to post a comment.