Technology looking cheap due to overhanging sector concerns

SPECIALIST MARKETS

Equity markets have had a rough ride since April when the S&P 500 Index spent several days above the 1,200 level.

Since then, the index has fallen by 16% to around 1,030, while the S&P 500 Information Technology Index has declined 17%. Global economic concerns continue to dominate equity markets, with the key issues being the risks associated with Southern European countries and their sovereign debt; the rate of growth in China and high unemployment leading to another decline in the US economy. The incremental impact of the points above will only really begin to surface as companies report their second quarter earnings, and provide guidance for the remainder of the year. But with many companies i...