(from 52-week highs)
Lam Research: down 40 percent
Micron: down 36 percent
AMD: down 27 percent
Intel: down 22 percent
But some big software companies held up relatively well until a few weeks ago, and then they, too, turned south. Salesforce, Adobe and Oracle are more than 10 percent off their highs, while Microsoft is down only 8 percent.
We have been transitioning from a decade of a low growth, low yield environment, one in which it paid to buy technology stocks because tech was one of the only sectors with significant growth. Now, we are moving into a higher growth, higher yield world, in which paying any price for growth may not be as attractive as it used to be. Now, value stocks may be more attractive than growth, and Treasurys are starting to look more attractive versus stocks.
It's important to keep perspective. Tech is still up 11 percent this year, and Apple, Microsoft and Cisco are all up 20 percent or more this year.
There's a lot being made about this "rolling correction." It's true, it's broader than tech. Some 60 percent of the companies in the S&P 500 are in correction territory, which means they are down 10 percent or more from their 52-week highs. More than 25 percent are in bear market territory, which means they are down 20 percent or more from recent highs.
The world is changing. Value stocks are cheaper and have mostly lagged the market. But if you look at the current leaders, the sectors that are the least off their 52-week highs all have a defensive, value-oriented tilt.