Categories
Market Volatility
Is tech volatility here to stay?

This chart has been updated to reflect market activity.



In 2017, technology share prices surged like true growth investments, but with a smooth trajectory of returns. 2018 brought bouts of volatility back to the market, hitting tech companies as hard as any. Higher valuations coupled with regulatory concerns have caused swings in the sector, which has had the highest standard deviation — a common proxy for portfolio risk — in the S&P 500 this year. Investors who stayed invested have been rewarded though, as the sector has also had the highest year-to-date returns. Choppiness is likely to continue, but we believe tech still remains attractive over the long term, as the largest companies have well-capitalized balance sheets and remain dominant leaders within their respective industries. 



Past results are not predictive of results in future periods.

Never miss an insight

The Capital Ideas newsletter delivers weekly insights straight to your inbox.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.