There’s no denying the technology sector has been a major market driver over the last decade or so. As we’ve continued to adopt technological solutions for a variety of applications, stocks within the sector have swooned. This has been particularly prevalent over the last year. The Federal Reserve’s potential pause on interest rates is moving the growth sector higher.
And yet some analysts have postulated that tech stocks have moved too far, too fast. The start of a new bubble may be brewing.
Nonetheless, record profits, non-extreme valuations, and overall continued strong demand for technology solutions make the sector still a great long-term buy.
However, investors may want to trim their expectations. Dividends could be the answer to top-notch tech returns going forward.
