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: HPQ), Apple (NASDAQ: AAPL) and SanDisk (NASDAQ: SNDK), 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 China. [Tech ETFs Riding on Robust Earnings.]