Some fund managers are being prompted to rotate back into the big tech and growth winners of the last decade in the hope that they can better weather a possible U.S. recession.
Many [big tech] stalwarts… have suffered declines on par with or exceeding those in broader stock indexes this year, as jumbo rate hikes delivered by an inflation-fighting Federal Reserve hit the tech and growth names that led markets in previous years.
Since growth companies tend to be less affected by the broader economy’s performance, however, some investors believe the category’s most profitable names may outperform the rest of the market if the Fed’s hawkish policy stance drags the U.S. into recession.
“You are starting to see some cracks in economic growth, which will help select companies that are very well positioned in the technology space,” said Saira Malik, chief investment officer at Nuveen…
Retail investors, meanwhile, have been buying “evergreen large tech companies” such as Apple Inc on recent market dips, according to Vanda Research.
A global poll of investors by Deutsche Bank in June found that 90% now expect a U.S. recession by the end of 2023, up from 78% the month before.
MacDailyNews Take: As during the COVID panic, Apple looks to be a safe haven.
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Cornpop says quit lying about recession possibilities! This is Russian Collusion again. He has the entire might of the justice department standing by ready to arrest and drag anyone who says otherwise away in shackles.
It is sad isn’t it that technically we don’t have a computer industry in America. No computers are actually built here. How does the saying go? Designed in California, Built anywhere we can pay people fish food for 14 hours per day?
Have a good 4th everyone.
That pesky capitalism. Chaps my hide.
Attention libturds, this holiday would not be possible without Americans with guns! Just sayin