This chart has been updated to reflect market activity.
In 2017, technology share prices surged like true growth investments, but with a smooth trajectory of returns. 2018 brought bouts of volatility back to the market, hitting tech companies as hard as any. Higher valuations coupled with regulatory concerns have caused swings in the sector, which has had the highest standard deviation — a common proxy for portfolio risk — in the S&P 500 this year. Investors who stayed invested have been rewarded though, as the sector has also had the highest year-to-date returns. Choppiness is likely to continue, but we believe tech still remains attractive over the long term, as the largest companies have well-capitalized balance sheets and remain dominant leaders within their respective industries.
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