2024-04-12 06:07:01 ET
Summary
- Tech stocks have dominated the market in recent years, with Apple and Microsoft outperforming the index and S&P 500.
- Many online investment ideas promote tech stocks as the best sector bet, but there are reasons to be cautious.
- Historical data shows that when sectors become too dominant, they often experience periods of underperformance. The tech sector is approaching these levels now.
- The tech sector has been a target of recent anti-trust laws that threaten the sector's dominance and cash flow.
Introduction
As a younger investor who wasn't in the market during the Dot Com Bubble or the GFC, I've only lived through markets dominated by the technology sector and a world dominated by the technology these companies have produced....
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For further details see:
XLK: There Is Too Much Risk To Be Buying Now