The concerns about the tech sector's outlook have forced many investors to sell their tech stocks. But Goldman, on the other hand, is trying to convince the investors so that they may invest their money in these companies. Goldman has mentioned in its Weekly Kickstart report that it is a fact that the tech sector valuations stand near cycle highs but when we take a look at the long-term history, the results look completely different.
Goldman has admitted that 2018 is the year when market breadth has become very narrow but they have also mentioned that when we take a look at the S&P 500 Index, we get to know that there are only 10 stocks that have successfully delivered 62% of the total return.
Goldman has calculated that the entire tech sector has delivered 76% of the total return for the S&P 500.
The narrow breadth has currently remained above levels as compared to the past. Therefore, the investors believe that it is an alarming situation for them. But Goldman indicates that it is a better sign because the profits that are generated by the tech companies in the first two quarters are higher than the previous years.
The shares of different tech companies have shown a significant rise in the second quarter. So, the investors should jump in today because it can bring them really surprising results.
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