When might IT equities lose their shine?
US IT firms have stormed ahead of the pack so far this year – but can they continue? Investment strategist Lars Skovgaard Andersen gives his views on the outlook for IT equities.
US IT firms have stormed ahead of the pack so far this year – but can they continue? Investment strategist Lars Skovgaard Andersen gives his views on the outlook for IT equities.
Whereas I was more cautious ahead of the earnings reports, my response now is a clear and unequivocal yes. After the pronounced increases so far this year we had reached a point where equity prices needed a new impetus and confirmation that the IT sector was still on the right track. And here I think the earnings reports have provided many with the answer they had hoped for, even though there have of course been a few disappointments. The sector is very much being driven by corporate investments in new technology, with a high level of investment activity in cloud solutions, big data and internet security. Microsoft’s numbers and expectations going forward strengthen our belief that IT companies will continue to benefit from a solid level of investment.
Lars Skovgaard AndersenInvestment strategist, Danske Bank