- Amid the market volatility, growth-oriented technology companies came under extreme selling pressure in January, falling into correction territory - defined as a 10% drop - after weeks of decline across major equity indexes.
- Expectations of the Fed raising interest rates weighed on tech stocks, with a rapid rise in real yields (i.e., the yield after inflation), while potential new anti-trust regulations caused uneasiness.
- Differentiation is key, and recent volatility underscores the importance of detecting quality exposures within the category.
For further details see:
Detect, Don't De-Tech