Tech, Consumer Stocks Lift Market in 2023
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The tech, communications, and consumer discretionary sectors dominated in 2023, fueled by the outperformance of mega-cap stocks like Apple, Microsoft, Amazon, and Tesla.
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These sectors make up nearly half the S&P 500, so their gains lifted the overall market significantly.
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Tech offers a balance of steady, dividend-paying giants and high-growth AI players, but trades at a premium valuation.
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Consumer discretionary features a diverse mix of industries and valuations, from Amazon and Tesla to McDonald's and Home Depot.
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Communications blends varied industries like telecom and social media; investors may be better off picking individual stocks rather than buying the whole sector.