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How should we play US tech from here?

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Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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    How should we play US tech from here?

    Continue to find your service stimulating and essential daily reading. Just renewed for 2 more years - thank you! Was initially too slow to exit a high exposure to numerous US (GOOGL, AMZ, PYPL) and Chinese (Alibaba, JD and Tencent) NASDAQ listed stocks and now looking for best time to reduce. Seems to be getting close from your commentary. Not lookong for personal advice!

    Answer

    Hi Mark,

    Thanks for the positive feedback and understanding that MM is a General Advice Service Only.

    We have been overweight the tech space since late 2022 hence we’re watching its current period of strength, and outperformance carefully as investors embrace the idea that interest rates are at or very close to a peak. Importantly we now believe the time to start locking in some profit is approaching fast.

    • The NASDAQ has now rallied over 20% in 2023 with our target area only 5% away i.e. the risk/reward is diminishing fast.
    • The market is now focusing on a rate pivot and the meaningful pullback by bond yield is one of the main reasons for Q1’s tech strength but we believe this is now largely built into the market.

    MM believes the period of outperformance by US tech stocks is maturing fast, and will tweaking our portfolios as such. Keep an eye on our timing as a guide.

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