The technology sector had a difficult 2022 as share prices fell due to slowing revenue growth, higher interest rates and declining margins. This is exemplified on a sector basis by the 30% decline in the iShares US Technology ETF, which includes Alphabet, Amazon, Apple, Microsoft and other “FAANGM”
stocks among its top 10 holdings. What caused the decline? Fundamentally, stocks rise and fall on two metrics, valuation (such as P/E ratios) and earnings (EPS), where the P/E ratio multiplied by the EPS = Price. Let us look at each metric separately. Read
Thoughts on the Market: December Edition
We close the door on yet another year and thank our clients for your continued trust in The Murray Wealth Group. The Global Equity Growth Fund had disappointing performance in 2022, declining 15.8% as rising interest rates squeezed the P/E multiples of quality growth stocks. However, our Income Growth Fund recorded positive performance of 2.9% and outperformed its benchmark by 1,010 basis points. Please see our portfolio review section below for full details.