There’s no denying that technology is all around us. From cloud computing and mobile commerce to even our refrigerators, tech has invaded every facet of our lives. And it’s only becoming more integrated in society with every waking day. So, it’s no wonder why investors have embraced technology in a major way for their portfolios. This has been especially true in the low-growth environment since the end of the Great Recession.
But all the high margins and growth come at a price – and that’s out-of-wake valuations.
To put it bluntly, technology stocks are expensive, and potentially historically so. This puts investors in an interesting quandary. At what point do we step back from the sector? Could losses be on the horizon? Or will the tech train keep rising and continue to pay plenty of dividends? The answer is not so simple.
Be sure to check technology sector stocks here.
