My latest piece on the technology sector without all the technical jargon or complicated charts has just been published in The Armchair Trader newsletter. I was connected to the publication through a long-time friend and partner, which is how this little collaboration came about.
Established in 2010, The Armchair Trader is a UK-based financial publication providing independent commentary on global markets, covering stocks, commodities, ETFs, cryptocurrencies and derivatives. For this piece, I have tried to keep things simple and practical – looking at what has been happening in the technology sector, what has changed, and what it could mean for investors.
Here is a section:
The bears are back you know. The recent weakness in technology shares is a good example. Earlier this year, investors seemed convinced the sector could do no wrong. Up, up and away. Today the conversation has turned noticeably more cautious. Money is rotating into other sectors and geopolitical uncertainty once again dominates the sensational headlines.
Imagine being one of my investors. I recommended buying or accumulating beaten-down technology stocks selectively based on the same disciplined process I have followed for years. A few days later they were even cheaper. I can only imagine what some investors were thinking.
Advising or managing other people’s hard-earned wealth is never a comfortable responsibility during periods like this. Yet, as I write this on a quiet Sunday from the comfort of my home, I am surprisingly relaxed. Corrections are part of investing. Sentiment has weakened considerably. The long-term case for the quality technology companies on my radar has not.
Earnings season is upon us. The Federal Reserve remains in focus while oil price volatility and geopolitical events continue to complicate the inflation outlook. The approaching US mid-term elections are unlikely to reduce uncertainty. If anything, I expect volatility to remain our constant companion for a while longer.