There’s been a bit of price volatility in technology companies as a result of weak corporate earnings and the prospect of tepid growth. Share prices have pulled back. For example, Apple Inc. (ticker: AAPL) has been down for the last 7 trading sessions.
Despite the uncertainty of the last few months, investors have been piling money into tech since 2012, leading to explosive valuations. So, being the contrarian, I’m presently underweight tech. If I use the S&P as the benchmark, the Information Technology sector’s weight is 19.7% of the index. My portfolio is nowhere near that percentage.
Here is how the market reacted once earnings were announced.
Courtesy of: Visual Capitalist
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