Having posted strong gains in the past three months and comprising a large portion of growth indexes, technology stocks, once again, are attracting fund managers’ interest, The Wall Street Journal reports.
Tech are large-cap stocks are likely to two of the strongest-performing sectors in the coming year, predicts Bob Turner, chief investment officer of Turner Investment Partners.
“The sector really made a comeback in the last three months,” Turner said. “From its lows in mid-July, tech rallied over 30% heading into the end of the year. We’re firm believers that tech and large-cap growth funds are finally positioned for a prolonged rally after six years of underperformance.”
One of the reasons Turner says he is so optimistic about tech is growing consumer demand, particularly for the new ability to download video to all sorts of devices—which is creating demand for increasing bandwidth and, thus, new products. In addition, new television and computer technologies are also driving sales.
“People used to hold onto their TVs for eight to 10 years on average. Now consumers are moving into digital sets and new technologies that require a faster repurchasing cycle,” said Edmund Harris, co-manager of the Guinness Atkinson Global Innovators Fund.