Technology stocks have been among the best performers to-date in 2019. This is evident from the fact that Technology Select Sector SPDR ETF (XLK) has returned 30.5% year to date. The tech’s upward journey is far from over.
The last few years have witnessed a series of breakthroughs in cloud computing, predictive analysis, AI, self-driving vehicles, digital personal assistants and IoT. Moreover, accelerated deployment of 5G technology — the next wireless revolution — is likely to create more opportunities. This will significantly raise demand for high-tech handheld gadgets and microprocessors.
However, the ongoing U.S.-China trade war and a slowing China economy are potent challenges.
That said, value investing is easily one of the most popular ways to find great stocks in any market environment. It is definitely one