Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

UBS Says it's Too Early to Buy Tech

Stock Markets Jun 08, 2022 16:02
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Sam Boughedda

UBS Global Wealth Management Chief Investment Officer, Mark Haefele, told clients in a note Wednesday that it's too early to call time on the tech underperformance.

Over the past two weeks, tech stocks have rebounded, but, Haefele said year-to-date, growth stocks have still "underperformed by a wide margin."

"The Nasdaq is down 22% since the start of the year, compared with a decline of around 13% for the S&P 500. Rising yields have weighed on the valuations of tech stocks, particularly those that are not yet profitable, and as a result, investors have pulled out capital," said the analyst.

"Many investors have asked us whether the sell-off in growth stocks presents an opportunity. Generally, we hold a least preferred view on growth stocks. We expect them to underperform over the remainder of 2022 and advise investors with time horizons of less than one year to reduce exposure."

Instead, UBS believes the current environment is more favorable for value investing, with value stocks outperforming in inflationary environments.

"Data since 1974 suggests that value sectors tend to outperform when inflation is over 3%, and while we see inflation falling in the coming months, it is likely to remain above this threshold for some time."

UBS Says it's Too Early to Buy Tech
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email