Joined Nov 11, 2007
31,929 Blog Posts

Tech Darlings Remain in Investor’s Spotlight as They Cap Their Best 10 Weeks of Relative Performance Since 2009

“Shares of technology companies are rallying as investors see capital spending for their products strengthening along with the economy, consistent with the Federal Reserve’s latest growth forecasts.

Tech stocks capped their best 10 weeks of relative performance since 2009 last week, and the Guggenheim Standard & Poor’s 500 Equal-Weight Technology exchange-traded fund has outpaced the Guggenheim S&P 500 Equal-Weight ETF (RSP) by 4.8 percentage points since April 19. The gains show a “hand off” is starting, as investors move into industries that could outperform benchmarks later in the economic expansion, said Brian Jacobsen, who helps oversee $221.2 billion as chief portfolio strategist at Wells Fargo Advantage Funds in Menomonee Falls, Wisconsin.

“If the Fed is confident enough to begin taking the training wheels off the economy, then that should benefit tech stocks,” he said. Wells Fargo maintains an overweight recommendation on the sector partly because capital spending on these products would improve with increased assurance about the durability of the expansion, he said.

The Federal Reserve Bank of San Francisco’s Tech Pulse Index, which tracks the health of the U.S. information-technology industry, is showing an improvement in investment, consumption, employment, industrial production and shipments. The index rose to 98.96 in May, the highest since 2008.

Unprecedented Stimulus…”

Full article

If you enjoy the content at iBankCoin, please follow us on Twitter