‘What comes next for investment in the tech sector?’ is a question Mary McDougall put to Ben Rogoff, lead investor at the hugely popular Polar Capital Technology Trust. His response: "I feel like the growth trajectory for those companies is very strong. The challenge is always – and it really is a challenge for a growth investor – to try and assess how much of that is already captured in the valuation."
In this podcast, find out which tech companies Ben thinks are worth the price and hear his thoughts on the regulatory outlook for the big tech companies as we head towards a hugely polarised presidential election.
Mary and Ben discuss many of the topics discussed in recent IC articles, click on the links below to find out more about the outlook for the US technology sector.
Borrowed growth: Is the big tech bubble about to burst?
If there was ever any doubt that tech would have a defining role in the world’s future, coronavirus has quashed it. The outlook for technology companies has surely never been so appealing. But there is a counter argument to that sunny assumption, one that has begun to rear its head during earnings reporting season as the big tech companies discuss the outlook. For all of them, the problem is the same: if three months of global lockdown is the pinnacle of demand for tech services, what comes next?
America’s great stock market conundrum
“The market predicts the economy; the economy does not predict the market,” wrote Ben Miller of Miller Value Partners in his 10 July letter to investors. This simple truth, he argues, is the problem with those who believe US stock prices have become detached from reality.
Further Reading: Is Amazon good for the market or the consumer?
Current competition laws are designed to protect the consumer, meaning Amazon – which has pushed down prices, pioneered online shopping and made life easier for its millions of customers – is on the right side of regulation. As Lina Khan argues in her Yale Law Journal article 'Amazon’s Antitrust Paradox', to regulate the big tech companies, competition laws needs updating.
