Tiffany & Co. (NYSE: TIF), Nordstrom (NYSE: JWN) and Saks (NYSE: SKS) all had down days.
These "defensive" retailers -- places people will continue to shop even in or perhaps to a greater degree in a down economy -- were one of the sectors investors turned to when the boards turned negative.
This is sometimes referred to as a flight to quality. The idea is that investors, worried about -- whatever -- will seek a safer alternative to shield their assets.
The significant trend here, though, is not retail.
Specifically, it's semiconductors. When the going got tough, the tough looked to microchips. They bought Intel, Altera, Xilinix, KLA-Tencore, Microchip Technology,Analog Devices and Linear Technologies. Expand the tech circle a little wider to include the Motorolas and Amazon.com, and it's clear what the market is trying to tell us.
Tech is key.
Tech is not just shelter in the storm, either. It's got the most potential going forward.
Don't believe me? There's not a single issue of Game-Changing Stocks that doesn't touch on some form of tech innovation that in one way or another will change our daily lives -- and potentially generate serious returns for investors.
Look no further than the indexes: The Nasdaq Composite Index is trading at 23.6 times earnings.