Industry Voice: S&P 500 - 2500, where next?

While the broad market has returned just over 11% this year, the S&P Information Technology sector has returned more than 25%.

Investors have been willing to pay up for the growth offered by technology stocks, perceiving it to be in scarce supply elsewhere. But, if expectations around technology disappoint, or competition authorities look more closely at the sector, the hype could disappear quickly.

Investors who still want to allocate to the US might prefer to add to areas which have underperformed in recent months. If the equity market continues to do well, or if growth surprises to the upside, then this year's laggards (like oil equities) should have their day in the sun. But if the outlook becomes more challenging, investors will probably sell what they are overweight already, i.e. those large tech companies where growth increasingly comes at a premium.

_{Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity.}

_{Note the value of an investment and the income from it can go down as well as up, so you may get less than you invested and tax rules and allowances can change. The ideas and conclusions featured are the author's own and do not necessarily reflect views being actively implemented in Fidelity's range of investment products and solutions. They are for general interest only and should not be taken as investment advice or as an invitation to purchase or sell any specific security. Past performance is not a guide to what may happen in the future and any figures and returns quoted are purely to illustrate the author's points unless stated otherwise.}