
The Tech Sector Is Over - NN88
https://ftalphaville.ft.com/2019/01/08/1546923600000/The-tech-sector-is-over-/
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pmart123
I mean this is true, Bookings is not a tech company, nor is Facebook
(advertising). I do think Microsoft, Nvidia, Intel, or New Relic would still
classify as technology companies for example. Some large companies are a bit
trickier such as Amazon and Apple. The same could be said for whether Bayer is
now a pharma company or agro-chemical company after the Monsanto acquisition.
Overall, this just demonstrates the issues surrounding mass indexation.
Technology trends can make index weights and exposures non-sensical depending
on the pace of innovation, mergers, etc. My last startup used a distance
metric on business segment revenue, named competitors, etc. to come up with a
better taxonomy and distance metric for company comparisons versus single
buckets.

