Skip to Content
scroll

View on Tech stocks

Advanced Search

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

Ask a question

    The Latest Q&A

    Question asked

    View on Tech stocks

    We seem to be approaching a cross road where interest rates may being to drop in US and potentially rise in AU? How would this effect technical stocks in AU? Noting that falling interest rates is usually beneficial to cyclic and consumer stocks, and not to high growth tech stocks? In my portfolio I have a large allocation towards technical and health stocks. So my question is, should I be looking at reducing my exposure in this sector or hold due to potential interest rate increase/s in AU? Some of my tech stocks have achieved good gains in the last 12 months (i.e. key stock holdings...ASX: 360, AD8, ALU, DDR, MP1, NDX, PME, WTC, XRO; US: GOOGL META, MSFT, NFLX, TTD). Thanks in advance.

    Answer

    Hi Andrew,

    We provide General Advice only hence your question has been answered in terms of how we view our own portfolios. You have touched on a very topical subject in today’s market.

    • We believe interest rates/bond yields will decline over the next 18-months making more economically exposed stocks relatively more attractive in a general sense.
    • This month we’ve reduced our Xero (XRO) and Goodman (GMG) holdings while buying Mirvac (MGR) for our Active growth Portfolio. 

    We will not shun the tech stocks, falling yields are actually a positive when valuing their long duration earnings, and there are some incredible businesses in this area, though as the drivers of the market broaden, our portfolios are likely to reflect that transition.

    chart
    image description
    Xero Ltd (XRO)
    image description

    Relevant suggested news and content from the site

    image description
    Overview
    image description
    A discussion with Geoff Wilson – Wilson Asset Management & James Gerrish – Market Matters
    image description
    Thursday 17th April – ASX +24pts, CGF, BHP, STO
    image description
    Major Movers Today
    image description
    Ausbiz: Research Lead Shawn Hickman discussing Copper
    image description
    Thursday 17th April – Dow -699pts, SPI down -26pts
    image description
    Stocks This Week – Source Bloomberg
    image description
    Wednesday 16th April – ASX +20pts, BOQ, RIO, ZIP
    image description
    Sectors This Week – Source Bloomberg
    image description
    Wednesday 16th April – Dow -155pts, SPI down -3pts
    Members only

    UNLOCK MARKET MATTERS NOW

    Take a free trial.

    No payment details required.

    Already a member? Click here to login
    Back to top