Technology stocks

The U.S. equity market has periodically been dominated by a few technology-driven stocks, most recently the so-called “Magnificent Seven.” Historically, similar dominance occurred during the Nifty Fifty era in the 1960s–1970s and the dot-com boom in the 1990s. These periods of concentrated leadership often led to temporary outperformance, but systematically capturing such gains has proven challenging. Our study investigates the potential to exploit technology sector dominance using momentum-based strategies across Fama–French 12 industry portfolios, analyzing whether long-only, long-short, and rolling-basis approaches can generate persistent alpha, and assessing the limitations of simple timing methods.