After being the darling of the market for so long, the Technology sector came falling back to earth in the fourth quarter of 2018, faring even worse than the declining broader market. Possible explanations for the severe correction in the sector are increasing fears of a trade war with China and worries about a global economic slowdown brought on by tighter monetary policy both in the US and abroad.
The sector’s high-growth companies, which the Saratoga Advantage Trust Technology & Communications Portfolio often seeks to avoid, were hit particularly hard.These stocks had been climbing for years, largely on the notion that the status quo would hold.Trade disputes and fears over the economy have threatened this status quo.While performance during the quarter was disappointing, we believe our focus on fundamentals, valuation, and durability of business continue to provide a significant potential benefit to investors in the sector. _____________________________
Information contained herein was obtained from recognized statistical services and other sources believed to be reliable and we therefore cannot make any representation as to its completeness or accuracy. Any statements not of a factual nature constitute opinions which are subject to change without notice.
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