On the Cusp of an Epic Tech Cycle?
While some are exercising caution when it comes to technology, Wellington Management believes this sector may present long-term opportunity.
If you drive north from Flagstaff, Arizona to the Grand Canyon, cracks in the earth start appearing many miles away. But it’s not until you get to the South Rim and stare into the chasm that you start to understand the true size of it. Today, I am seeing those initial cracks in the earth within the technology sector.
At the start of 2016, many people were surprised when I said that I thought a truly epic global technology cycle would be well underway by 2018 or 2019. Now, some market participants are turning more cautious on tech. Periods of consolidation or inventory adjustments are to be expected, but any pause in momentum should be short-lived and may provide opportunities to build positions in undervalued stocks, particularly as multiples are currently low.
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