Playing a Slice of the Tech Megatrends
Also Interesting
Strategy Espresso
- The Technology sector changed a lot last year. The GICS sector reclassification, enacted in September 2018, created the new Communication Services sector. This action left Tech as a smaller, more tightly defined group of hardware, software and semiconductor stocks. The sector gained greater exposure to investment as businesses and governments modernise, and became less reliant on consumer confidence, which we see as positive in the current environment.
- The Tech sector’s disruptive businesses have created secular growth at a time when cyclical growth is being questioned. Tech companies supply the goods and services to build cloud computing, artificial intelligence, big data and cybersecurity — all examples of ‘megatrends’, and all markets with sizeable upside. Companies in other sectors need to invest in Tech products as they strive to innovate and become more productive. Therefore, even though an economic slowdown may arrive this year, demand could still grow
