A top market expert says stocks won't suffer any 'significant' drops from here as 'strong secular growth story' carries on | Markets Insider

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A top market expert says stocks won't suffer any 'significant' drops from here as 'strong secular growth story' carries on

on Friday that the market won't suffer any"significant drops from here" because a"secular growth story" centered around the strength of technology companies will provide support.

"Chances are you're not going to see the magnitudes of increases certainly that we've seen over the last six months," Shah said."But do we expect the market to come tumbling down from there? I'm certainly not a buyer of that idea." The market expert said that people have become increasingly more reliant on technology during the coronavirus pandemic. While the deployment of a vaccine may reverse that reliance slightly, as more people may ditch food delivery apps in exchange for eating inside a restaurant, Shah believes a"fundamental core" of the reliance on technology is here to stay.

She added that in an environment with so much uncertainty surrounding the coronavirus and US presidential election, investors need companies with strong balance sheets and positive cash flow. Mega-cap technology companies meet these criteria, Shah said. Shah also said that the proliferation of technology during the coronavirus outbreak and the sector's large weight in the S&P 500"insulated" the index from"completely dropping" at the height of the pandemic.

 

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