“Growth stocks such as those in the tech sector have done well but most have very expensive valuations, so we see some profits being taken off the table and invested in sectors that may well perform better going forth,” he reasons.
The Dow Jones Industrial Average (DJIA) on Nov 24 rallied to a record 30,000 points as US President-elect Joe Biden prepares to take over the White House. Investors were also cheering the global economic recovery seen next year as more positive news on the vaccine front are announced.
However, the clutch of US tech stocks, which have helped power the gain of the market throughout this whole year amid the Covid-19 pandemic, are likely to come under closer scrutiny. Senior manager at Phillip Futures Avtar Sandu believes there might be a shift among investors to move towards value stocks instead of growth stocks, a large portion of which are the tech stocks. “The baton may well be passed on to another sector to dominate growth,” he says.
