With the Nasdaq Composite down 30% from its highs and deep in bear market territory, investors are finding no comfort in the technology sector. Yet amid this painful market backdrop, there are some areas within the downtrodden sector where investors can still find safety, according to Bernstein. "Tech's overall valuation is now approaching its historical relative multiple, pointing to more limited risk of tech continuing to underperform," wrote analyst Toni Sacconaghi.
"Across the 10 periods where the broader market has declined 10%+ since 2000, tech's average annualized return has been -44%, while the broader market's has been -33%," Sacconaghi said. "Across all the drawdowns, the most expensive quintile of tech stocks underperformed most, while the least expensive fared best." Here are some areas where investors should consider hiding during this bear market, according to Bernstein.