While the sector offers the chance of owning a growth play in a low-rate environment, recent share price stalls are making investors more cautious about where they put their money.
The technology sector has been a happy hunting ground in the COVID-19 pandemic where longer-term shareholders were joined by cashed-up retail investors. But a bout of weakness for share prices has forced a tech investing rethink.
The NY FANG+ index is up 124 per cent and the ASX technology index has risen 116 per cent from mid-March to the end of August. But the rally ground to a halt in late August and the NY FANG+ index is down 11.4 per cent from its peak while the ASX tech index is down 8.3 per cent.
Sarah TurnerPerspective editorSarah Turner is the editor of the AFR Weekend Perspective section based in our Sydney newsroom. Email Sarah at s.turner@afr.com
