Why (Almost) Every Portfolio Should Have Tech Stocks

Many tech stocks, especially shares of companies that benefited from stay-at-home trends, soared in value throughout the pandemic last year. But that trend reversed over the past few weeks, as higher bond yields and lower COVID-19 infection rates sparked some investors to begin a rotation from growth stocks to value stocks.

As this paradigm shift continues, many investors might be tempted to sell all their tech stocks and buy cheaper reopening plays across the retail, energy, and travel sectors.

But investors need to avoid throwing out the baby with the bathwater as they navigate the currently choppy market. It would certainly be prudent to reduce your exposure to some of the frothier tech stocks, but most investors should still retain some exposure to the tech sector for three reasons.

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Source Fool.com