Source: Macrobond, total return in USD.
How do you rate growth in the tech sector going forward?
“I see a trend whereby companies perhaps cut back on investments in new machinery when they are uncertain about the future, but are less inclined to cut back on the digitalisation of their business and continue to invest in software and digital security, etc. Companies across all sectors constantly need new technology to remain competitive in a world that will simply become even more digitalised in the coming decades – therefore I still expect the area to experience solid growth.
However, this does not mean that all tech companies will enjoy growth, or that all themes within technology will thrive. As always, there will be both winners and losers, so investors may be wise to have a broad exposure to technology via one or more funds.”
This content is not investment advice - you should always speak to an advisor about how a possible investment matches your investment profile before making an investment.
Did you know that...
- Microsoft, Apple, Alphabet, Amazon and Facebook together make up around 18% of the US S&P 500 index, which comprises 500 of the largest listed US companies.
- In 2019 these five equities together accounted for close to a quarter of the overall rise in the S&P 500 index – just like in 2017.