MarketWatch: “Software stocks sink, extending their historic underperformance. What comes next?”
By datatrekresearch in IN THE NEWS
Excerpt from MarketWatch quoting DataTrek's Jessica Rabe:
.... "Jessica Rabe, the co-founder of DataTrek Research, recently looked at the 100-day trailing returns of the VanEck Semiconductor ETF and the iShares Expanded Tech-Software Sector ETF, two exchange-traded funds viewed as proxies for their respective industries. She noted that chips are now outperforming software by roughly 5 standard deviations, which she called an “unprecedented” divergence...
...Does that mean software is about to roar back? Not quite, according to Rabe. She’s not ready to call a software rebound, pointing to the unprecedented challenges facing the sector’s growth.
“History says software is very oversold relative to chips, but we think its unprecedented underperformance suggests that its underlying fundamentals face structural headwinds that don’t necessarily support an immediate ‘reversion to the mean’ trade,” she said in a note"....
Full article here on MarketWatch.
