Navigating High Valuations in the Technology Sector: Investment Strategies for Wealth Managers and Investors

The Influence of Price on Technology Investments for Investors

Investing in technology can be costly at the moment, with high valuations for many companies in the sector. Wealth managers and investors are seeking ways to access opportunities while keeping valuation in mind.

Dan Smith, a senior equity analyst at Canaccord Genuity Wealth Management, acknowledges the challenge of investing in technology with current high valuations. He believes that timing plays a crucial role in determining when to enter or exit the market to maximize returns.

Storm Uru, co-manager of the Liontrust Global Technology fund, emphasizes the significant opportunities available to investors in the technology sector. However, he is cautious about excessive valuations and maintains a target price for the stocks he owns. If a stock exceeds the target price, he would consider selling it. Uru believes that focusing on companies that benefit from artificial intelligence (AI), rather than AI companies themselves, can offer more attractive valuations.

Smith also prefers to look at companies that facilitate AI (AI), rather than AI companies directly, as he sees more attractive valuations in that area. Uru shares a similar sentiment, finding companies that benefit from AI to be an increasingly interesting area for investment. By focusing on these types of companies, investors can access the benefits of technological advancements while also considering valuation factors.

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