iStock.com/Bet_Noire Technology Sector Overview for 2019
The new year has arrived and, for many, this marks a fresh start. This is especially true for money managers. I am sure many of them are looking forward to a new beginning because 2018 did not exactly shape up to be a banner year for the tech sector.
Since early October 2018, the markets began to sell off, and the selling has been relentless. December, which is usually a good month for stocks and is known for the “Santa Claus rally,” was on pace to be the worst-performing December since the Great Depression.
Just the mention of the Great Depression sends chills down my spine, but what else can we expect when the Federal Reserve continues to raise interest rates and a trade war continues to escalate?
Any historian will tell you that these are the exact same factors that fueled the economic contraction that led to the Great Depression. Add the government shutdown into the equation and it becomes quite obvious why the markets have been performing as poorly as they currently are.
Technology Industry Trends in 2019
Facebook, Inc. (NASDAQ:FB), Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX), and Google-parent Alphabet Inc (NASDAQ:GOOG) are the famous “FAANG” stocks that the bull market in technology stocks has been built on.
Unfortunately, these stocks have all rolled over recently, putting the tech sector in a precarious position. So if you think the current market is difficult, then I am sorry to say that I do not think things are going to get any easier this year.
In order for you to get a better grasp of what I’m trying to point out, here’s my technology sector overview for 2019. I am going to take a technical approach, outlining the developments