Tech ETFs Were a Hot Commodity in January Trading
Tech ETFs Were a Hot Commodity in January Trading
No matter what happens in the stock market, it seems that technology always plays a huge role in investing. Tech stocks are often some of the most popular stocks available and many fortunes have been earned and/or lost through investments in technology. In fact, recently, it appears that stocks from the tech industry are getting even more attention. Take the month of January, for example. Research shows that in the first month of this year, exchange-traded fund (ETF) investors were very gung-ho on technology stocks. An ETF is an investment fund that is traded on the stock exchanges, in a similar manner as stocks.
Flip-Flop in Tech Stocks
When it comes to money flow in January, the strongest S&P 500 sector was technology, as investors doled out more than $897 million towards the Technology Select Sector SDPR. So how big of a difference was this from last year? According to research, last year investors actually sold around $900 million of these types of stocks. So without question, if January is any indication investors are very keen on ETFs in the tech industry. So naturally, one would ask, what has changed from one year to the next?
Big Companies Report Positive Earnings
Perhaps the most significant change is that some of the biggest names in the tech industry are performing so well, including Apple, which recently reported better than expected results on its latest quarterly earnings. Additionally, other big names, including Microsoft, Intel, Texas Instruments, Lam Research, Advanced Micro Devices, and KLA-Tencor also have reported strong earnings recently.
More Good News on the Way?
There is other good news as well, and it has to do with politics and taxes. Many of the nation’s top tech companies store much of their earnings overseas, in order to cut back on their tax bill, given the country’s high corporate tax rate of 35 percent. However, with the Trump administration now in place there is a good chance that corporate taxes will be going down, which means many of these companies, including Apple could be willing to bring that money to U.S. soil, which would be a huge boost for the U.S. economy and to tech stocks, as well.
Uncertainty Still Exists
However, no investment sector is immune to challenges and the tech industry is no different. In fact, some of the things that seem like positives, at the same time could be seen as negative. Take for example, the Trump administration. While the president could create a more lax corporate tax policy, the entire tech industry is also concerned with how some of his other policies could affect them, such as his stance on immigration. With much uncertainty and so many unanswered questions, the tech industry is not full proof from a downturn. However, if the first month of 2017 is any indication, then this could be a big year for tech stocks and those who invest them.
We hope you found this article about “Tech ETFs Were a Hot Commodity in January Trading” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Federal Government Still Facing Huge Deficit
Federal Government Still Facing Huge Deficit Does it seem like no matter how much money the federal government collects in tax revenue, they will still never have enough? For a lot of people the, answer is a resounding “yes.” The country’s Monthly Treasury Statement lends even more credence to that belief. What does the Treasury…
The IRS is Not a Bully – You can poke a bully in the nose.
The IRS is Not a Bully You can poke a bully in the nose. This is the third installment of “The IRS is Not a Bully” series, identifying taxpayer concerns and the difficult position in which Congress puts the IRS. Namely, applying ever increasing pressure to operate in ways its founders never intended, until it’s…
Could You Pay More to Drink Soda in Berkeley?
Could You Pay More to Drink Soda in Berkeley? We all know that obesity is a problem in our country. Activists and other interested parties continue to work on ways to help curb this growing problem. Indeed, obesity is neither good for individuals or for our country. However, would creating a new tax to help…
What Happened to California’s Tax Revenue in May?
Where has all of California’s money gone? Ok, so the state isn’t bankrupt or anything like that, but according to recent reports, the state’s tax revenues fell short by 5.5 percent in the month of May. That marks the first time in six months that California’s revenues have not reached expectations. In fact, that 5.5…