Can tech companies' growth potential continue to support lofty valuations?

THE BIG QUESTION

clock • 9 min read

Despite being one of the top performing S&P 500 sectors in 2014, technology companies could come under pressure this year. Fund managers tell Investment Week if they beleive tech stocks still hold value

    Vincent Rivers  Portfolio manager, JOHCM US Small and Mid Cap fund  MAINTAIN MOMENTUM There seems to be a widespread perception it was a rampant technology sector that drove the US stock market to record highs last year. Technology was not even the best-performing sector within the S&P 500 in 2014. We do not believe US tech looks overly expensive at present, even if the wider market has reached fairly fully-priced levels. We think the sector can maintain its momentum. The current earnings season has admittedly been fairly mediocre in the round, although certainly not unduly co...

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