Is the US tech sector crashing back to earth?

By Felicity Duncan.Last week, after a correction in the US tech sector, news stories began to appear that talked about a "tech rout" and the "end of the tech bull market." After leading US stocks higher for the better part of a decade, it seems that tech is falling out of favour. But is this an accurate reading of what's been happening in the markets?.I would argue it isn't, for a number of reasons. First, the "tech sector" is a big tent that includes companies reliant on advertising like Google and Facebook, companies reliant on consumer electronics sales like Apple, and companies reliant on business spending and investment like Microsoft and semi-conductor manufacturer Texas Instruments. The correction has been broad, but not all of these companies are the same. Second, the correction comes after an enormous run in prices. Companies like Amazon have more than doubled over the last year. A 10% correction is not a catastrophe after growth like that – more like a sensible adjustment..___STEADY_PAYWALL___.Alec Hogg will be addressing these issues in more depth in our Global Share Portfolio webinar this week – you can sign up here. In the meantime, it's important to take a step back and look at the fundamentals, rather than being swept up in the noise..In Premium today, you catch the latest episode of The Editor's Desk – Alec Hogg and I discuss the budget, Brian Joffe, and Tesla. You can also listen to Alec's fascinating interview with Brian Joffe. You can read about The Financial Times' take on legalising cannabis and you can find out why Tesla is in the government's crosshairs again.

Is the US tech sector crashing back to earth?

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