Macro Minutes: Tech Positioning in Current Market Cycle

Key Points

  • With the speed of the 2020 downturn and recovery, we believe we are currently late market cycle.
  • Large cap growth equities’ tendency to outperform late in the market cycle supports our preference for Tech equities given the broad growth orientation of the sector.
  • While Tech bubble fears abound today, we believe they are unfounded as Tech equities are supported by strong fundamentals – a different environment from 2000.
Investing in financial markets involves a risk of loss and there is no guarantee that all or any invested capital will be repaid. Past performance neither guarantees nor reliably indicates future performance. The value of investments and the income from them will fluctuate with world financial markets and international currency exchange rates.