Subscribers know we are looking for another ~5% downside for the Australian tech sector, a pocket of our market which has significantly underperformed its global peers through 2021. With US tech tumbling into the close this morning the local sector is likely to come under pressure from the opening bell with yesterday’s gains probably going to vanish. However we feel yesterday’s outperformance was a sign that the local sector is slowly looking for a low after already falling -23.6% from its 2021 high, a move which represents huge underperformance in a market which tested its all-time high this week.
In our opinion this downward spiral by this high value growth sector is maturing fast hence today we’ve focused on candidates for our Growth Portfolio which is sitting on an elevated 17% cash position.
