The Saratoga Technology & Communications Portfolio enjoyed a strong first quarter of 2017. Solid economic data helped drive US stocks higher, with cyclical sectors benefitting disproportionally. Despite concerns over the Fed’s plan to raise interest rates, investors seem willing to partially ignore Federal Reserve rate increases due to rates’ historically low absolute levels and relatively moderate degrees of inflation. Low rates and modest inflation continue to benefit Main Street and boost prospects for employment and consumer spending, two important drivers of the domestic economy. We expect these trends to continue for some time, though the market’s recent rate of appreciation is likely to moderate. We believe the Technology sector continues to offer strong cash generation abilities and healthy balance sheets.
The Portfolio’s focus on blue-chip technology leaders has helped it weather some of the volatility in the sector. Certain blue-chips tend to return capital to shareholders through dividends and buybacks, which can potentially boost returns, enhance long-term appeal, and provide a margin of safety.
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.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Saratoga Advantage Trust mutual funds. This and other important information about the Saratoga Advantage Trust's funds is contained in the prospectus, which can be obtained by clicking here, or by calling (800) 807-FUND, and which should be read carefully before investing. The Saratoga Advantage Trust's funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Saratoga Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC. 1/16 © Saratoga Capital Management, LLC; All Rights Reserved.