While information technology, as a group, lost 8.76% of aggregate market capitalization in October 2018, the three worst sectors in the US market were energy, industrials and materials, all of which lost much more, in percentage terms, than technology. The median percentage change, in both October 2018 and YTD 2018, in market capitalization was greatest at the youngest tech companies. The median percentage change becomes smaller for older tech companies, in October 2018, but the effect for the four highest age classes is more mixed for the YTD numbers. While the percentage change in unique boutique prices at these companies is in line with the market drop, if Apple is included in the mix, the five companies collectively lost a staggering $276 billion in market capitalization between October 1 and October 26. accounting for almost 11.7% of the overall drop in market capitalization of US stocks. That said, a much smaller median percentage change at the largest tech companies has a much biggest effect on the market, because of the market capitalization of these companies.
Collectively, these five companies have added almost $521 billion in market capitalization since the start of the year, and without them, the overall market would have been down substantially. That said, I have been wrestling with what, if anything, I should be doing, as an investor, in response to the market movements. That may make you a more informed investor, or at least an investor with more information, but I am not sure that constant feedback is healthy for your portfolio, especially in periods like this one. These war bonds were sold to private citizens who wanted to invest in the country and make a return on their investment. As stocks have gone through their pains since October 1, treasury bill and bond rates have remained steady, which would make little sense if the expectation is that they will rise in the near future. After all, if investors expect rates to rise soon, those rates will start going up now and not on cue, when the Fed acts.