Is the Tech Rally Fooling You?
Technology stocks have been gaining momentum in 2012, up eight of the last nine weeks. However, over the last 12 months, consumer discretionary and health-care companies have really powered the rally.
So far this year, the Nasdaq Composite posted a gain of 11 percent, compared to an 9 percent increase for the Standard & Poor's 500 and a 6 percent return for the Dow Jones Industrial Average.
Similarly, the Nasdaq 100 , a measure of the largest non-financial firms listed on the Nasdaq exchange, is up 14 percent year-to-date.
Surprisingly, some of the best-performing stocks in the Nasdaq 100 in the past year are not part of the technology sector.
In fact, the predominant sectors in the index have been consumer discretionary stocks, with seven of the top 20 companies making the list followed by health-care with six companies.
But even if you go back further to the last time the Nasdaq Composite closed above 3,000 on Dec. 11, 2,000, the leaders are again consumer discretionary and health care.
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