Where to now for tech stocks?
This article was originally published on Australian Financial Review.
While the sector offers the chance of owning a growth play in a low-rate environment, recent share price stalls are making investors more cautious about where they put their money.
The technology sector has been a happy hunting ground in the COVID-19 pandemic where longer-term shareholders were joined by cashed-up retail investors. But a bout of weakness for share prices has forced a tech investing rethink.
The NY FANG+ index is up 124 per cent and the ASX technology index has risen 116 per cent from mid-March to the end of August. But the rally ground to a halt in late August and the NY FANG+ index is down 11.4 per cent from its peak while the ASX tech index is down 8.3 per cent.
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