Have noticed a recent upward trend in the Information Technology Sector in the United States. Over the course of about a year (4/29/13-4/03/14), the one year % change TTM in the SPLRCT is +23.48% . This S&P Sector has outperformed, though granted it is highly correlated with, the DJIA and S&P 500
Source: CNBC.com
In terms of peer industries, Information Tech is a leader, but not at the front of the pack.
Source: Fidelity.com
Speculation: Information Technology Sector's revenues appear to stem from cash available to firms that utilize these services. Thus, in a contracting market, the Information Tech Sector appears vulnerable as it will be at the behest of buyers' ability to pay for services. Typically, tech is the most volatile sector. Would imagine as this sector moves into the mature stage of the industry life-cycle that growth will stagnate and earnings will decrease at an increasing rate.
- Nile C.
4/29/14 10:54amEST
In terms of peer industries, Information Tech is a leader, but not at the front of the pack.
Source: Fidelity.com
Speculation: Information Technology Sector's revenues appear to stem from cash available to firms that utilize these services. Thus, in a contracting market, the Information Tech Sector appears vulnerable as it will be at the behest of buyers' ability to pay for services. Typically, tech is the most volatile sector. Would imagine as this sector moves into the mature stage of the industry life-cycle that growth will stagnate and earnings will decrease at an increasing rate.
- Nile C.
4/29/14 10:54amEST
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