Get Ready For a Major Year-End Tech Rally
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Rating Summary:
58 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 10 | New: 12
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If history is any guide then the U.S. technology sector will see a strong year-end rally, according to analysts at Goldman Sachs.
The firm notes that over the past decade only two years has tech failed to deliver a year-end rally. Once was the bubble bursting in late 2000, and the second was the financial crisis of late 2008.
Goldman said tech year-end rallies have averaged 30 percent over the past ten years, double the performance of the S&P 500 during the same period. On average they start of August 23, end on December 19, and last 118 calendar days.
The strongest rallying sub-sectors in tech have been historically been Hardware and Networking and more recently Hardware and Internet, according to the firm.
Based on the relationship between between pre-rally pull-backs and year-end rallies over the past ten years, the current Tech rally would be expected to return approximately 30 percent, the firm notes. Since we are already up 10 percent off the July 2 low, this leaves us leaving 20 percent of performance to go.
Some Related Tech Stocks:
Microsoft (Nasdaq: MSFT), Intel (Nasdaq: INTC), Dell (Nasdaq: DELL), HP (NYSE: HPQ), Oracle (Nasdaq: ORCL), Google (Nasdaq: GOOG), Yahoo! (Nasdaq: YHOO), EMC (NYSE: EMC), Cisco (Nasdaq: CSCO), Juniper (Nasdaq: JNPR).
Some Related Tech ETFs: Technology Select Sector SPDR (NYSE: XLK), Semiconductor HOLDRs (NYSE: SMH), PowerShares QQQ (Nasdaq: QQQQ), iShares Dow Jones US Technology (NYSE: IYW).
The firm notes that over the past decade only two years has tech failed to deliver a year-end rally. Once was the bubble bursting in late 2000, and the second was the financial crisis of late 2008.
Goldman said tech year-end rallies have averaged 30 percent over the past ten years, double the performance of the S&P 500 during the same period. On average they start of August 23, end on December 19, and last 118 calendar days.
The strongest rallying sub-sectors in tech have been historically been Hardware and Networking and more recently Hardware and Internet, according to the firm.
Based on the relationship between between pre-rally pull-backs and year-end rallies over the past ten years, the current Tech rally would be expected to return approximately 30 percent, the firm notes. Since we are already up 10 percent off the July 2 low, this leaves us leaving 20 percent of performance to go.
Some Related Tech Stocks:
Microsoft (Nasdaq: MSFT), Intel (Nasdaq: INTC), Dell (Nasdaq: DELL), HP (NYSE: HPQ), Oracle (Nasdaq: ORCL), Google (Nasdaq: GOOG), Yahoo! (Nasdaq: YHOO), EMC (NYSE: EMC), Cisco (Nasdaq: CSCO), Juniper (Nasdaq: JNPR).
Some Related Tech ETFs: Technology Select Sector SPDR (NYSE: XLK), Semiconductor HOLDRs (NYSE: SMH), PowerShares QQQ (Nasdaq: QQQQ), iShares Dow Jones US Technology (NYSE: IYW).
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