Technology stocks took a beating last week as investors took
profits and sought safety from the turmoil in global markets. What
we'd all like to know now is whether the sell-off has made
technology exchange traded funds (ETFs) a bargain.
The Nasdaq - one of the best-performing indexes year-to-date -
got clobbered last week, sinking 10.5%. Among the poorest tech
performers were Hewlett Packard (NYSE:
), Apple (NASDAQ:
) and SanDisk (NASDAQ:
reports David Benoit of Dow Jones Newswires
According to analysts, this was simply a correction to a sector
that saw a great deal of price appreciation. Toan Tran of
Morningstar says, "Tech valuations are pretty high."
Memories of 2008 mixed with questions of global technology
demand may have led investors to seek less volatile investments.
According to Tran, how far the tech sector falls will be tied to
macroeconomic developments, particularly in the European Union and
Tech ETFs Riding on Robust Earnings.
Still, Oppenheimer analyst Yair Reiner says the strengths that
have allowed the tech sector to outperform other markets still
remain. "Don't forget, technology companies in general have
probably the best balance sheets out there, and probably have the
highest growth still," Lazard Capital analyst Daniel Amir said.
"People will be swarming back into tech once we get a little past
Whatever troubles tech experienced last week, they appear to
have been a blip on the radar. Use a trend-following strategy to
spot opportunities in this sector. [
How to Follow Trends.
For more stories about technology, visit our
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Sumin Kim contributed to this article.