Slower economy may weaken tech stocks

In 1999, the Nasdaq returned a scorching 85.6%, the highest single-year return of any major US equity index in history. The technology sector alone contributed a whopping 65.2% of the year's return for the S&P 500 Index. Here's something you probably don't know: technology stocks are not uniformly growth-oriented and, as such, they should not all be viewed as having a similar risk/reward profile. In fact, the returns on technology stocks were almost perfectly correlated with the Morgan Stanley Cyclical Index for the first eight years of the 1990s. Since then, however, this correlation has ...