{"id":120302,"date":"2021-04-07T23:57:56","date_gmt":"2021-04-07T23:57:56","guid":{"rendered":"https:\/\/precoinnews.com\/?p=120302"},"modified":"2021-04-07T23:57:56","modified_gmt":"2021-04-07T23:57:56","slug":"op-ed-boost-to-tech-stocks-will-not-last-and-more-pain-is-ahead","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/op-ed-boost-to-tech-stocks-will-not-last-and-more-pain-is-ahead\/","title":{"rendered":"Op-ed: Boost to tech stocks will not last, and more pain is ahead"},"content":{"rendered":"
Investors should be able to take advantage of bullish momentum in tech stocks for at least the next couple of months.<\/p>\n
In my last post on the subject on Feb. 4, the takeaway was "tech's reign of relative dominance has come to an end." The tech sector as measured by the XLK ETF went on to trail the S&P 500 by about 6% over the next month, and growth trailed value by over 14% during that same period.<\/p>\n
This is not meant to be a victory lap; far from it. A month of underperformance hardly meets the criteria for a loss of dominance. Further, the weakness of tech and growth stocks has started to reverse of late, clawing back about half of that initial underperformance.<\/p>\n
With stocks like Apple, Facebook, and Amazon trading down to their 200-day moving averages, what's next?\u00a0Is tech ready to make a comeback, or is this just a pause along the road of further underperformance?\u00a0I believe it is the latter. \u00a0<\/p>\n