Tech shares have been leading the broader U.S. stock market higher for more than a year. Over the past 12 months, the S&P 500 technology sector is up more than 25 percent. In that time, the S&P 500 has gained more than 10 percent.
However, tech has come under pressure following a slew of negative news for some of the key companies in the space. Facebook has fallen more than 10 percent this month amid concerns on how the company deals with the data it collects from users.
The decline has weighed on the broader sector and has raised concerns about whether tech can continue its run higher in the near future.
“It depends on all sorts of factors,” said Tony Thomas, an analyst at Morningstar. “Tech has obviously had a great run.” He said, however, that the fund managers he has talked to recently see Facebook’s and tech’s decline as a buying opportunity. “Fundamentally, managers aren’t seeing problems in these companies.
Devlin of Lynchburg, Virginia-based Selective also said he welcomes the recent volatility in tech. “Short-term investors should think more long term, he said. “As we see more volatility in the tech sector, it’s easier to find more opportunities” to invest in the space.
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