Tech stocks: The new safe havens?

Posted by Paul R. La Monica via CNN Money

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safety-and-tech-first-614xaEven though stocks are enjoying a nice little rally today, green on the screen has been the exception rather than the rule in 2014. The Dow is still down about 6% so far this year.

But as my colleague Stephen Gandel from Fortune pointed out Wednesday, tech stocks have held up better during the recent tumult. The Nasdaq is down just 3%. CNNMoney’s new Tech 30 index has also outperformed the broader market. It’s off by only 2.7%.

It may seem a bit odd that tech stocks are not getting crushed more than the overall market. After all, the Nasdaq was the top index in 2013. It surged 38%, compared with a 26% gain for the Dow and 30% pop for the S&P 500.

Related: Investors should stop freaking out 

Still, it makes sense that techs are now safe havens. Or at least some of them. Why? Earnings. Plain and simple.

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