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Cashing in on Tech Sector Volatility

Without question, the sector most favored by traders is technology, and for a number of reasons.

Most great technological advances are the brainchildren of Americans and thus are seeded, nurtured, fostered and taken public as some of the most dominant domestic companies ever created. Ingenuity is an American staple, with more than 90% of all new ideas generated in the United States.

Technological innovation is what provides America its leading edge against all other economies in the world. The technology sector provides constant change and a daily stream of exciting stories to latch on to and get truly excited about when life-changing applications and tools are introduced to the business and consumer marketplaces that advance society to operate more efficiently.

The benefits of technological advances can be seen almost immediately, which greatly satisfies investor desire for immediate gratification for revenue and earnings growth. Merger and acquisition activity is always at work in the tech sector. Good companies get gobbled up faster in the tech space than all the other industries combined.

We just don’t hear much about the hundreds of private tech companies that get swallowed up by Google, Cisco, Oracle, Microsoft, Apple, Salesforce and the rest of the big serial acquirers. The last behemoth takeover was when Dell bought EMC for $67 billion in late 2015. In June of last year, Microsoft shelled out a whopping $26 billion for LinkedIn, making it the priciest company the tech titan has ever bought.

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