Impressive earnings reports have recently helped lift the technology sector and ETFs such as XLK. . Historically, after a profit falloff, the technology sector has been among the best areas in a rebound.
“The only sector that has record an increase in expected earnings growth since the start of the quarter (due to upward revisions to earnings estimates) is the information technology sector,” according to FactSet.
SEE MORE: 46 Tech ETFs to Tap Into Big Growth Names
“The rotation out of defensive plays and into riskier bets has been ongoing since September. Earlier this week, Savita Subramanian, an equity and quantative strategist at Bank of America Merrill Lynch Global Research, cited the shift when noting that a respectable 58% of active funds tracked by the firm outperformed their benchmarks both in October and the broader third quarter. Among those funds, overweight positioning technology were at a six -year high and funds were boosting their exposure to energy,” according to Barron’s.
For more news and strategy on the Technology market, visit our Technology category.
Technology Select Sector SPDR
