Technology: Data Security and Privacy Remain on the Forefront

• Overall, we view the tech sector as modestly overvalued at a market cap weighted price/fair value of 1.02.
• Enterprise cloud computing remains the most important story in tech.
• Data security and privacy remain at the forefront of technology.
• We still see a hot M&A sector, particularly in semis and software.

Overall, we view the Tech sector as slightly overvalued today at a market cap weighted price/fair value of 1.02 as of May 31, versus 1.05 as of the end of February and 1.08 at the end of November. The Nasdaq index has risen about 4% from mid-March to mid-June and is up about 11% year to date in 2018 as of mid-June.