Chart of the Week

Time to buy tech?

April 13, 2026

Time to Read: 3 mins

Technology valuations have meaningfully declined over the past year, but the sector continues to stand out for its strong earnings growth and relative resilience. While near-term uncertainty remains, tech still appears well positioned as a key driver of broader market growth.

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Is it time to buy tech?

The sector has broadly declined over the last six months, driving valuations to multi-year lows that are nearly in line with those of the S&P 500. The price-to-earnings ratio of the technology sector has fallen from 32x to a low of 20x, and now stands at 22x.

At the same time, the technology sector continues to post some of the strongest earnings growth among all S&P 500 sectors. The sector is expected to deliver 37% earnings growth in 2026 compared to18% for the entire index. Outside of software, which has sold off on concerns about artificial intelligence, tech stocks have remained resilient. The sector has even outperformed since the war with Iran began and is now 4.4% higher compared to the S&P 500’s 0.1%.

While further downside in technology is possible, valuations have adjusted significantly, suggesting the worst of the sell-off may be behind us. The near-term outlook is clouded by geopolitics, but we don’t consider tech much riskier than the broader market, and we expect the sector will remain a primary source of growth.

Chart of the Week | Macroeconomic

In a real regime shift?

Higher inflation has been a dominant theme of the current decade. In addition to price shocks, it is being shaped by secular investment trends in infrastructure, defense spending, onshoring and the ongoing AI buildout. These structural changes reinforce the case for looking beyond traditional 60/40 portfolios to include real assets as a source of diversification and return potential in portfolios.

Chart of the Week | Macroeconomic

Getting real with real assets

Inflation appears to have transitioned from its pre-Covid average of 2% to a stickier point closer to 3%, and we do not expect a near-term return to prior levels. In this environment, we believe real assets, such as commodities, infrastructure and REITs, can provide inflation protection, diversification and return potential.

Chart of the Week | Macroeconomic

Not in a bubble

As the S&P 500 approaches all-time highs, there are renewed concerns among investors about elevated valuations. However, historically strong profitability and expected earnings growth appear to support current pricing. In addition, the current S&P 500 price-to-earnings (P/E) ratio is roughly equal to the average since Covid. As a result, we do not view U.S. equities as being in bubble territory and we remain constructive on the asset class.

Chart of the Week | Macroeconomic

Is the market rally broadening?

Stocks, as measured by the S&P 500, are up over 13% through early August. The solid gains have been fueled by a resilient economy, steady consumer spending, optimism around artificial intelligence and better-than-expected earnings growth. Still, some investors worry the advance may be too concentrated in technology and that AI-capex monetization may fall short of expectations. A closer look suggests that it is not just tech moving the market higher.