Tech rally has further to run, J.P. Morgan says By Reuters

© Reuters. FILE PHOTO: A J.P. Morgan logo is seen in New York City

SINGAPORE (Reuters) – The enormous rally in tech stocks has further to run, according to analysts at investment bank J.P. Morgan, who recommend staying invested across the sector for its growth potential.

Stocks across the industry, from hardware to software, have outperformed the market by miles this year as the COVID-19 crisis accelerates reliance on the internet for commerce.

“In contrast to the dot-com bubble, the current rally has been supported by strong earnings delivery,” J.P. Morgan’s equity strategists said in a note on Monday, saying they are sticking with an “overweight” recommendation on the sector.

“In addition to resilient earnings growth, tech has healthy balance sheets and strong cash flow generation, again in contrast to the 2000 episode.”

The MSCI World Information Technology index () is up 27% this year compared with a 1.5% rise in global stocks ().

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*