Business Week- Technology stocks are enjoying an uncommon summer of love, as investors have been shifting money away from financial companies in light of the subprime and credit market troubles.
“This year, tech stocks are outperforming pretty notably,” says Scott Kessler, head of the technology group at Standard & Poor’s Equity Research. “Actually, tech stocks were outperforming before the housing and credit issues came to the fore.”
In the last 13 weeks through Aug. 24, the S&P Information Technology index has been the best performer among the 10 sectors tracked by Standard & Poor’s, with a gain of 3.1%, vs. a 2.4% drop in the S&P 500 index. And for the year (through Aug. 24), the tech index has climbed 10.2%, beating the 4.3% rise in the S&P 500.
