Don’t confuse IT and the rest of the equity market

An interesting observation from BCA Research.

It is well known that during the bursting of the dot-com bubble, between March 2000 and May 2001, the S&P 500 Information Technology sector lost 55%, while the S&P 500 declined by 13%.

What is less often remembered is that, over the same period, the S&P 500 excluding Information Technology actually rose by 11%.

The point is not that today is identical to 2000. The point is that market corrections are rarely uniform. Dispersion can be very significant. Technology and non-technology are not the same trade.

Don’t confuse IT with the rest of the market.