A Century Of Technology Stock Returns

In the nine decades between the Great Depression and now, tech was down in only two, and extremely up in two. Will the 2020s be one or the other, or somewhere in between?

While the technology sector has delivered exceptional returns in recent years, it is helpful to view its performance in the context of previous decades. As a key driver of economic growth, innovation, and productivity, technology has historically outperformed many other sectors.

The sector's strongest decade came during the 1990s, when it returned an extraordinary 1,248%, followed by the 1950s with gains of 877%. In contrast, the 2000s produced a cumulative loss of 47% following the dot-com bubble, while the 2010s generated a strong 364% return.

With several years of double-digit gains already recorded in the 2020s, investors are left wondering whether this decade could ultimately rival, and surpass, the best periods in technology's history. 

Source: Ken French Data Library, Bloomberg, First Trust

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.


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