Impressions

Technology Sector Gains Momentum at the Cost of Oil

In the past one month, the oil sector has slowly eased while the technology sector has gained traction.

When you compare the two indices for August and September, the Morgan Stanley High Technology Index (MSH) and the AMEX Oil Index (XOI), one can clearly see that Oil's loss was Technology's gain.

This may be the sign of things to come in the next few months. Stock market statistics show that the performance of the oil stocks are tied to the price of oil. As the price of oil begins to fall, oil stocks are getting more risky.

The positive news about the technology bellweathers has propelled the technology stocks in recent weeks. In the next 3-6 months, technology stocks can be expected to deliver a strong performance.

Labels: Sector

posted by Hari @ 9/08/2006 09:23:00 PM