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Buy the Dip in 5 Top-Ranked Tech ETFs

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Tech sector has been under pressure in recent weeks with the tech-laden Nasdaq composite Index losing about 3.5% past month. The reason for this slowdown in the tech sector can be attributed to the rise in treasury yields. The benchmark U.S. Treasury yield jumped to 1.61% on Oct 8 versus 1.48% recorded on Oct 1 due to Fed taper talks.

Growth sectors like tech space underperform in a rising rate environment as it decreases the relative value of future earnings, making the segment overvalued. Tech companies also face hurdles in funding their growth and buying back stocks (one of the attractions of the big tech stocks) due to higher rates.

Invesco’s Kristina Hooper, however, says that the tech weakness is a major buying opportunity for investors, as quoted on CNBC. “Technology over the longer term is going to benefit from increased corporate spending,” the firm’s chief global market strategist told CNBC’s “Trading Nation” on Friday.

Hooper believes the current weakness is fleeting and expects areas from software to cybersecurity to see considerable long-term benefits. However, Hooper indicated that one should hold tech stocks for three-to-five years to gain the maximum profit out of it.

In July, CNBC’s Jim Cramer said that big tech stocks are lucrative bets amid rising inflation and chances of higher interest rates. “Hyper-growth tech stocks........

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