The Australian Tech Sector enjoyed another strong session on Wednesday finally closing up +3.9% but when we consider its 46% plunge in less than 12 months it remains a mere drop in the ocean – we are looking for another +15% upside minimum although over 20% wouldn’t surprise us. Obviously, as we’ve seen over the last few days for this view to unfold markets probably need to see central banks continue to soften their hawkish views i.e. our core view into Christmas that the acceleration higher by interest rates is coming to an end.
- MM has moved overweight tech stocks in our Flagship Growth Portfolio, they looked good yesterday e.g. REA Group (REA) +9%, Seek (SEK) +6.3%, Megaport (MP1) +5.6%, Altium (ALU) +4.1% and Xero (XRO) +4%.
We have no intention of grabbing quick profits from our recent purchases unless we lose our bullish conviction towards the sector.
MM is bullish the Australian Tech Sector targeting 15-20% further upside into Christmas
