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While Technology was a market leader for much of the Summer and into the Fall, in the post-election world the sector has done a complete 180 and fallen off a cliff. The chart below shows the relative strength of the Technology sector versus the S&P 500 over the last year. When the line is rising, it indicates outperformance on the part of the Tech sector, while a falling line indicates underperformance. Following yesterday’s steep sell-off, the sector is now underperforming the S&P 500 over the last year! While the sector is just barely underperforming, it’s a far cry from where things stood just one month ago.
So which tech stocks have been pulling the index lower? The table below lists the 22 stocks in the S&P 500 Technology sector that are now down over the last 12 months. It wasn’t long ago that a list like this would have been considered a perfect list of stocks to own, but now holders of these stocks are having a hard time finding bids. First Solar (FSLR) has been the worst performer, losing nearly half of its market cap in the last year, while salesforce.com (CRM) has declined over 15%. It isn’t just high multiple tech that has fallen out of favor either. Apple (AAPL) is down over 6% over the last 12 months, while Intel (INTC) and Western Digital (WDC) are both down over 3%. To say that this turnaround in Tech has been swift would be an understatement.