The tech pack is splitting. Be ready!

Diversify before volatility

clock • 5 min read

Interest rates have scared tech investors. And, on the face of it, it is a fairly reasonable concern. If tech is as overvalued as a lot of commentators say, the sector could be ripe for a sell-off if investors can find decent returns on cash or bonds and do not fancy the added equity risk.

And, on the face of it, it is a fairly reasonable concern. If tech is as overvalued as a lot of commentators say, the sector could be ripe for a sell-off if investors can find decent returns on cash or bonds and do not fancy the added equity risk. Even if rates in the UK move from 0.1% to 0.25% it does not mean cash will suddenly give shares a run for their money.  Throw in the fact that inflation's sitting at 4.2% and holding too much cash will be a surefire way to lose purchasing power, at least for now. But it is the tech valuation argument that looks a bit more interesting. The...

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