Tech Stocks Accounted For 75% Of The Market’s October Return

5. But it splits along two lines. This is a sticker board of attendees at #FooCamp. Most wanted to see action against tech platforms.
— Matt Stoller (@matthewstoller) November 6, 2017

For some context on the unprecedented dominance of the tech sector on the overall market, here is some perspective from BofA’s Savita Subramanian on October returns, when Tech continued to lead the other ten sectors, generating +7.8% on a total return basis. This translates into a whopping 75% of the S&P 500’s return last month!
Furthermore, with virtually every lagging hedge fund rushing to buy the tech sector, chasing such activist central banks as the SNB, the sector’s 24.5% weight in the S&P 500 is now the highest since October 2000.
That said, considering tech companies reported some of the strongest 3Q earnings results, the best revision trends, and rank at the top of BofA’s quant model, is there anything to be concerned about?

This post was published at Zero Hedge on Nov 6, 2017.


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