The market experienced a sell-off earlier this week. So is now a good time to buy into tech? Luke Barrs, Goldman Sachs Asset Management Fundamental Equity Managing Director, joins Yahoo Finance to give his insight into the tech trade.
So it is now the time for investors to buy into tech at more attractive prices or does it make sense to stay on the sidelines?I think so many people are trying to figure out what they should be doing, what the approach should be when it comes to tech right now.Well, I think our starting point is selectively, there's great opportunity across the broad market, but specifically in tech as well, there are some transformational themes that are coming through that are driving earnings.
And so for us, the gen A I trend is a very transformational one that has been rewarding to some of the enabling technologies in the course of the last 18 to 24 months.What we're seeing now is a little bit of an adaption in hyperscale Capex trajectory. But that cycle should be favorable in terms of just maintaining growth at a relatively stable level and helping to positively influence earnings over the coming year.
And that is a little bit more difficult at this point because we just don't know how to utilize and apply some of those new techniques and capabilities in those software products to enhance that solution.Look, I think it's a very, very difficult question to answer.