Investors were delivered a harsh dose of reality when technology stocks tumbled last week. However, observers do not view the weeks events as a replay of the dot.com slump in 2002.
Technology shares remain at elevated levels with Amazon up 69%, Tesla 339%, Zoom 457% and Apple 52% year to date.
One of the leading reasons to buy tech stocks now is the belief that changes in working habits forced on us by lockdown and working remotely could become permanent. Whilst volatility will remain high, we believe that technology stocks will provide consistent returns in years to come.
Data Source: CNBC – 11th September 2020.