The Information Technology sector ranks third out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 27 ETFs and 144 mutual funds in the Information Technology sector as of July 15, 2014.

Regular readers know we are not big fans of forecasting outcomes in the financial markets. However, assessing investment probabilities based on evidence we have in hand is a value-add exercise.

Economist Hyman Minksy argued that when a private sector accumulates too much debt, an economic system buckles. Supporters of his theories point to the catastrophic effect that sub-prime mortgages had on the 2007-2009 U.S. economy.