The techs factor

TECHNOLOGY

Axa's Jeremy Gleeson on why the technology sector is well placed to deal with the challenges of today's markets

Equity markets recovered after reaching their low point in March 2009. It was particularly encouraging, although not surprising, to see the technology sector lead the way. During 2009, the MSCI World Information Technology Index rose 36.2%, compared to a rise in the MSCI World Index of 14.6%. Not only did the technology sector fare better during the downturn but it also led the recovery as balance sheets were cash-rich, light on debt and inventories were at manageable levels. The technology sector entered the economic downturn in a reasonably healthy condition. The harsh lessons learn...