Tech Bridged Gaps Created by Coronavirus
And what we expect from October.
|Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.|
Brian Colello: Technology has been a significant outperformer to the broader market in 2020. Over the past 12 months, as of Sept. 2, tech was up 65% year-to-date versus 25% for the broader market. Over the past three months, again ending on Sept. 2, tech was up 21% versus 16% for the broader market. And again, as of Sept. 2, the median technology stock was about 15% overvalued in our view. So, this is one of the frothiest valuations we've seen in tech since about 2007.
Brian Colello does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.