Cybersecurity may have most people on edge, but at least someone is benefiting from the scares.
The ISE Cyber Security Index is up 22% this year, compared to the S&P 500’s 3% gain, reports Bloomberg. Goldman Sachs is feeling pretty confident about the continued growth of the cybersecurity sector, particularly after news that every federal employee’s personal information just got stolen. Cybersecurity may prove to be the exception to Goldman’s rule that growth stocks will fall behind the market at the economy improves. Writes Goldman strategist David Kostin:
“…the prospect of significant and sustained sales growth for cybersecurity firms brings to mind the Biotechnology industry, another part of the market that has generated huge sales growth and soaring returns. Biotech returns have outpaced S&P 500 by 255 percentage points since 2011 (339% vs. 84%).”
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