Last week we looked at the major outperformance the IT stocks have enjoyed over the Resources since mid-May, its been good to us as we’ve migrated our Growth Portfolio to a significant overweight stance towards the tech sector. A couple of relevant points a few days before the EOFY:
- The IT stocks have largely enjoyed a great year and may be pushed higher by fund managers to improve their performance come Wednesdays 4pm cut off.
- As we saw post the major COVID outbreak in 2020 the tech stocks have a history of performing strongly during / after lockdowns, albeit a small sample size!
MM likes our current holdings in the tech sector making identifying obvious “sell candidates” far from easy but we are mindful that the coming weeks could deliver our sector target for the current outperformance.
MM feels the IT stocks will continue to outperform the resources for at least another 1-2 weeks
