The Morningstar Global Technology Index is up 16% year to date in 2019 and outperformed the global equity market, which rose 11% over the same period. Technology snapped back nicely in early 2019 with some optimism that the U.S. and China can reach trade agreements and avoid a full-blown trade war, an issue that caused the markets and the tech sector to fall in the fourth quarter. We continue to believe that tariffs and/or the lack of a trade deal may weigh on the health of the Chinese consumer and disrupt a highly interwoven tech supply chain that would be quite difficult for the U.S. and China to unwind.
Tech stocks have outperformed the global markets - source: Morningstar Analysts
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Brian Colello does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.