BreakdownJuly 23, 2021
We believe the technology sector is broadly breaking down. That’s the bad news.
The good news is that the correlation between pure growth stocks and pure value stocks has plunged. This means that growth only explains about 5% of the movement in value stocks right now. If present correlations hold, it is mathematically possible that technology could underperform while the broader market is mostly unaffected.
In our Quarterly Strategy Update, we track the data behind these trends and spotlight a handful of innovative non-technology companies that we believe could outperform in the backdrop of technology weakness.
Download slides here: Breakdown