A focus on rational expectations key for technology stocks

The tech sector typically leads in an economic upcycle. Valuations and expectations have corrected significantly this year and although we expect further weakness, we may be close to a bottom in earnings revisions. Tech’s sharp gains and losses over the last few years are not typical. We expect performance to be less broad based, driven more by bottom-up stock selection than style, macro and thematic factors. We remain focused on aiming to identify the global tech leaders of the future with reasonable growth expectations and valuations.