By Dr. Carla Pasternak
Last month, a Jeep Cherokee was brought to a halt from miles away. The hackers first took control of the entertainment system and windshield wipers. Then they stopped the gas pedal from working. While the driver pumped frantically on the pedal, the SUV slowed to a crawl. Then the brakes were disabled, and the Jeep slid uncontrollably into a ditch.
Fortunately, this was a controlled experiment. Still, it is a dramatic example of how technology is permeating our everyday lives. It's no surprise, therefore, that over the past decade the technology sector has delivered nearly twofold the returns of the broad S&P 500, and in the past two years, this sector outperformed both the broad-based equity index and all sectors except healthcare.
These market-beating returns are being driven by earnings growth. For the last 10 years, the sector's 12% annual average earnings growth rate was ahead of every other ... Log in or subscribe to continue reading.