FYI: ( Make sure your watch the video, its very well done, along with the Sidebar "Tech Stocks Could Be Winners in Big Sector Shift.)
Tech Stocks Could Be Winners in Big Sector Shif.)
A Market Shakeup Is Pushing Alphabet and Facebook Out of the Tech Sector
Photo: Javier Jaén
Think of Big Tech and companies like Alphabet, Amazon, Apple, and Facebook come to mind. The firms dominate our digital lives, living on our cellphones and influencing how we interact with people, buy things, get to places, access information, and consume entertainment. Their market impact has also been huge: These four stocks have returned 33.7% annually over the past five years, on average, versus the S&P 500’s 14.5%.
Regards,
Ted
https://www.barrons.com/articles/a-market-shakeup-is-pushing-alphabet-and-facebook-out-of-the-tech-sector-1535762710
Comments
https://www.mutualfundobserver.com/discuss/discussion/comment/105938/#Comment_105938
The point is that these firms don't just "dominate our digital lives", they dominate our lives. The value is in what they do (application), often more than in how they do it (technology).
Looking at the new comms services sector, 50% is Google and Facebook, based on market cap FIFTY. That just reinforces my sense that market-cap weightings are a farce and lead to skewed index performance ... and why I don't invest according to indices or market caps myself.