Technology growth stocks: Tailwinds persist, but caution warranted

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 47 sec. here
  • 49 min. at publisher
  • 📊 Quality Score:
  • News: 186%
  • Publisher: 92%

Canadian News News

Canada News,Breaking News Video,Canadian Breaking News

Having a healthy barbell mix of high growth companies combined with steady, defensive value names now seems prudent

Jonathan Pinsler is senior vice-president, portfolio manager, of TD Wealth Private Investment Advice.

The trends that have dominated the stock market over the past 18 months are likely to continue in the near term. Growth stocks, particularly in the technology sector , still enjoy favorable conditions despite rich valuations. Given, the timing uncertainty of the next U.S. interest rate move which will likely be lower, this can continue to support elevated valuations of growth stocks. The U.S.

1. Excessive optimism: Investors are reacting extremely positively to tech news that isn’t particularly bullish.3. Market volatility: Even small pullbacks in big tech names can have substantial dollar impacts. 5. Software industry challenges: AI spending is crowding out Software as a Service . Many software companies have been getting punished with poor guidance or missed expectations vs. analyst’s lofty expectations. 1. Narrow market advance driven by a few large companies3. High expectations of future growth

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS

Business Business Latest News, Business Business Headlines