Why The Tech Sector Could Be Set For A Downturn...In 2 Images

As the NASDAQ nears 5,000, the team at EidoSearch recently ran some comparative peer analysis on the sector. The goal? To get an idea of what the future may hold, by looking back.

From Eidosearch:

"We looked at the last 25 years of the Morningstar Tech Index to see if there are any similar instances of a 5 year price trend to what we’re seeing today. We found 3 with high mathematical similarity highlighted in the table below. The Internet bubble of 2000 was the biggest drop of course, but all three instances are down in the next 6 months:"

Here are the charts of the three similar instances and the next six months forward returns historically:

Learn more on EidoSearch.

Image credit: Nakasai, Flickr