Technology is the best performing sector so far in February, benefiting from investors playing an uncertain environment as both a defensive and a cyclical sector.
Technology, which defined growth in the 1990s, is down only 1.4% as a sector in February, making it the best, or the "least badly," performing sector this month. Healthcare, the most traditional defensive sector, is close behind, off 1.6% this month.
Investors have flocked to safe-haven sectors, as worries about the survival of big banks have led the financial sector to tumble 20% so far in February. The broad market, has measured by the S&P 500 index, is down nearly 18% year to date.
"The market is seeing tech as a defensive sector," said Owen Fitzpatrick, head of U.S. equities at Deutsche Bank. "With tech companies, there's not a lot of cash needs, so they don't need to access the credit flow."
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