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Borrowed growth

Is the big tech bubble about to burst?
Borrowed growth

Technology has been the saviour of 2020. It has provided connectivity, entertainment and understanding in the face of an unknown and rapidly evolving enemy. It has been a reliable companion in a world that has become eerily unfamiliar.

Perhaps that sentiment is a little sensational, but investors agree. During a virus pandemic that shakes economic security, consumer demand and global supply chains, cash-rich data experts are the types of company we want to own. The S&P technology index has climbed 15 per cent in 2020, driving a surprising recovery in the wider S&P 500, of which the tech sector makes up a third of the market by value. In the year to date, 20 of the 93 companies in the S&P 500 technology index (not including Amazon, which is listed as a consumer goods company) have reported share price growth of more than 20 per cent.


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