Yahoo Finance: “It will be tough for stocks to rally in 2019 without tech — but not impossible”By admin_45 in IN THE NEWS
Excerpt from Yahoo Finance quoting DataTrek's Nick Colas:
..... “The mathematical short answer is that it’s going to be very hard for the stock market to rise in 2019 without technology strength given its weighting in the S&P 500,” said Nick Colas, co-founder of DataTrek Research.
The information technology sector comprises of roughly 20% of the S&P 500’s market cap. The newly created communication services sector, which includes big tech names like Alphabet and Facebook, comprises of roughly 10% of the S&P 500’s market cap.
If technology is not the leader anymore, Colas said financials and health care would need to step in.
Financials account for roughly 14% of the S&P 500’s market cap, and health care makes up just over 15%.
Colas understands the bull case for health care. “A lot of growth investors have moved money out of tech and into health care,” he said. “It has the benefit of being massively regulated already, so unlike tech, you don’t have to worry about a big change in the regulatory landscape".....Read the rest of Nick's comments and the whole article here on Yahoo Finance!