If this is a recovery, then tech is a good place to be
by Christine on 05/08/09 at 12:53 pm
When it comes to recovery on the markets, few areas have posted as robust a rebound as the technology sector. Which leads to a rather obvious question: Is it too late for investors to jump in?
After all, it can be dangerous to get into a sector after it bounces some 50 per cent off its lows. Or at least, those were the old rules – rules that were written before one of the most spectacular market crashes in history.
The tech index on the S&P/TSX is up a resounding 36 per cent since the beginning of the year, and an even more impressive 52 per cent from its March 9 lows. With a gain of 37 per cent, only the financial services sector is up more in 2009.
“You’re not supposed to jump in after such a run, but counteracting that is the fact that we are not in the late stages of an economic cycle,” said Duncan Stewart, director of research and analysis at DSAM Consulting. “If we are indeed in a recovery, it’s still early. And technology tends to do well early in a recovery – always has, and probably always will.”
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