XLC - XLK: Apple And Microsoft Likely To Weigh The Index Down

• Periods of extreme outperformance in a sector have typically been followed by underperformance, and tech has dominated in recent years.
• The tech sector will likely underperform the wider market - and large caps within the tech sector will likely do worse than smaller caps - over the remainder of the decade.
• Rising energy prices and historically high valuations in the tech sector make for a dangerous combination.
• Since equal-weighted indexes have outperformed cap-weighted indexes in previous "secular" bear markets, Apple and Microsoft are likely to underperform the rest of the tech sector.

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