Info Tech

• Our quantitative work on technology remains poor, and only a single tech subgroup—Technology Distributors—makes our current Attractive list.  Per the Group Selection disciplines, there are currently no technology stocks in our Select Industries portfolio.
• Tech’s underperformance has helped restore better relative value to the sector, but valuations aren’t yet cheap enough for a big “reversion-to-the mean” bet.

NASDAQ was only index to decline in February. Some are wondering if the rally is over for the NASDAQ. This month’s “Of Special Interest” looks at past NASDAQ recoveries.

The broad Tech sector has rallied significantly from lows and is not cheap by tradi­tional valuation measures. Upside driver must be earnings momentum, which contin­ues to be strong.

Technology stocks retreat in late September. The NASDAQ records its first down month this year (–1.3%), but finished Q3 up 10.1%.