One of the things that impresses me the most about Technology is the fact that Amazon, a stock up over 70% since February, isn’t even a tech stock. While some people like to argue that Amazon is a Technology company, and that may be true, it is not a Technology stock. In fact, $AMZN represents a 0% weighting in the S&P Technology Sector Index or in the ETF. Instead, it spends its days holding up the serial underperforming Consumer Discretionary Sector with a 13% weighting.
We trade and invest in stocks, not companies. So we’ll focus on the supply and demand dynamics of stocks, and ignore the noise surrounding “companies”. The big question I want to ask is, what would the Tech sector look like if Amazon was included? [Read more…]