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Digital is the new norm

Asia Analytica
Asia Analytica • 9 min read
Digital is the new norm
We do not doubt that there are indeed many tech stocks that may well be trading at irrational and unsustainable valuations.
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Technology stocks are riding high on strong upward momentum worldwide. A case in point: The Nasdaq Composite index gained 43.6% in 2020, far outperforming both the Dow Jones Industrial Average and Standard & Poor’s 500 index, which were up 7.2% and 16.3% respectively. Tech stocks have continued to rack up gains in the first few weeks of 2021, again outpacing the broader market.

Against the backdrop of the Covid-19 pandemic — which has hit many businesses, especially those in the services sector, hard — tech stocks were rightly seen as a safe haven. Indeed, many benefited as businesses and consumers shifted from the physical to digital worlds.

We have written about how e-commerce, digital banking and e-wallets, on demand and streaming gaming and video, cloud services and so on have helped people maintain some semblance of normality for both work and leisure during the extended periods of restrictive movement measures.

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