« Byron Wien's Top Surprises for 2008 | Main | Human Computation in Capital Markets & Elsewhere »

Latest Stories

• Excel Wankers and Recession Averages
• Sorry, New York is Closed. Check Back Later.
• Catching Falling 2009 Earnings Estimate Knife
• Survivorship Bias in Global Markets
• Talking Positions on a Lazy-ish Retirement Portfolio

January 4, 2008

Tech Sector Getting Smoked

Ah, so much for the Intel bulls. On a downgrade today, Intel is getting hammered -- and taking all of tech with it. Check the overall market map for a sea of red, with tech standing out:

Now, here is tech itself with some of the biggest losers today highlighted:

Question: How has tech gone from hero to zero so fast? Answer: It hasn't.

What has happened, however, is that earnings-nervous investors have recently been running from value stocks to growth. As a result, when there is even a whiff that tech is less "safe" (a dubious notion to begin with) than they thought, as happened this morning, the very narrow sector -- Google, Apple, RIMM, Amazon, Intel, etc. -- sells off with a vengeance.

Some highlights: Dell -5.7%, Broadcom -5.3%, Apple -3.2%, Google -2.3%, and Intel -7.3%. Oh, ouch.

Sphere It   |   Digg it   |   Bookmark it   |   Stumble it   |   Facebook it

Comments