Markets finish week down after bouncing on Bannon's exit >>> READ MORE

5 Blue-Chip Tech Stocks to Unplug Now

These companies won't provide you with explosive growth

    View All  

Technology185So far in 2013, blue-chip tech stocks have been a big disappointment. Consider that the iShares U.S. Technology ETF (IYW) has underperformed substantially, up just 7% since Jan. 1 vs. almost 18% for the broader S&P 500 Index.

So what gives?

Well, broader headwinds to consumer and business spending persist in Europe, Asia and America. In Europe, it’s the continued hangover of a sovereign debt crisis and eurozone recession; in Asia, it’s the slowdown of the China growth engine; and at home, it’s a continued focus on efficiency at corporations and persistently high unemployment sapping consumer spending.

Couple that with the fact that technology, while grand, hasn’t really improved that much upon the models of the last year or two. I mean, if you have an iPhone 4 instead of an iPhone 5, is it really the same has having a landline telephone? Can’t you still send email and read spreadsheets on Windows XP instead of Windows 8?

As a result, tech stocks haven’t been able to see the explosive growth that many investors have hoped for. And looking forward, the headwinds will persist — and the underperformance will, too.

Don’t let your portfolio get left behind. If you own one of these five big-name tech stocks, consider selling now and moving your money elsewhere:

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC