LONDON : Tech-dominated"growth" stocks are still not cheap despite some sharp falls over the last six months, analysts at U.S. investment bank JPMorgan cautioned on Monday.
JPMorgan's analysts estimate that on average tech firms that are yet to even make a profit have lost 30per cent of their value since peaks around September last year, while 'fintech' firms which focus on tech-savvy banking apps and tools have dropped 40per cent. The chance is that the earnings of 'growth' sectors might not be exceptional anymore, although the big driver remains bond market borrowing costs, which have shot up this year as top central banks have laid the groundwork for interest rate rises.
"We believe that bond yields will keep moving higher through the course of the year," JPMorgan said referring to the bond market costs