Detect, Don't De-Tech

With a tumultuous January in the rear-view mirror, let's look back so we can move forward. Growth-oriented tech companies faced extreme selling pressure after weeks of equity decline. Why? The expectation of rising real rates has weighed on tech stocks. Combine that with the potential of new anti-trust regulations making their way through Congress, and you can see?where the uneasiness comes from.

In these circumstances, detecting quality within the sector is key, as is differentiation. Pandemic equity winners (you know the ones!) have already given back much of their post-pandemic rally. However, innovative companies with stable cash flows and higher margins have faired well – think those in the data processing, hardware, and semiconductor industries.

Ultimately, tech is the fabric upon which today's – and tomorrow's – economy is built, and their long-term value proposition remains the same. For more thoughts on tech's recent moves from my team and me, read my full article on iShares.com:?https://www.ishares.com/us/insights/detect-dont-de-tech?