Technology leadership: a new cycle is emerging

A new cycle is emerging in technology and with it comes the opportunity for further growth and outperformance. Removed from the epicentre of the global credit crisis, the tech sector looks well positioned

The technology sector boasts both defensive characteristics and secular growth opportunities against a very challenging economic backdrop. Its performance year to date is indicative of clear market leadership, capitalising on its secular growth potential and the increased pressures of cost-efficiency measures that all corporates are facing in a prolonged downturn. The Dow Jones World Technology index rose 25.9% for the six months ending 30 June 2009, significantly outperforming the FTSE World Index which rose 5.3%, in US dollar terms. Muted IT spending over recent years, as the excesses ...