Investors Are Ditching Tech Stocks at the Fastest Pace Since November 2007By
Pigs get fat, hogs get slaughtered. Such a risk-averse adage appears to be front of mind for investors, who fled high-flying technology names at the fastest pace in nearly a decade last week.
Outflows from PowerShares QQQ Trust Series 1, which tracks the Nasdaq 100 Index topped $3.7 billion for the five sessions ending July 28, the most since early November 2007.
On the surface, it was a quiet week for the product that tracks large-cap tech companies, ending down just 0.2 percent. On Thursday, however, QQQ suffered an intraday selloff of more than 2 percent led by Amazon.com Inc., with investors dumping the e-commerce giant ahead of its quarterly earnings report. Also that afternoon, JPMorgan Chase & Co. quant Marko Kolanovic warned that investors had a “limited window” to position for a pickup in volatility.
The divestiture of tech shares came despite of an impressive round of quarterly results for the group as a whole, pointing to investors’ wariness of holding a product that’s already up 20 percent year to date and has outperformed the S&P 500 Index by 10 percentage points in 2017.
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