The Technology Select Sector Index, which the ETF 'XLK ' tracks, is down about 9% since the all-time high on July 10.
This is even though the technology sector earnings have experienced a compound annual growth rate 2.7% greater than the S & P 500.
The chart below reflects the earnings growth of the Technology Sector vs. the S & P 500 over the past 20 years in a log scale.
Not only has the technology sector grown earnings faster, but earnings growth has also been more stable.
While technology stocks are down almost 9% from their all-time highs, those all-time highs also reflected all-time high valuations.
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