As the global economy continues to face a slowdown, investors are looking for companies that can thrive despite it. Despite fears of poor earnings, so far results have not been as bad as anticipated. The biggest question now is whether tech earnings will be able to deliver on their promise and help buoy the market further.
The Nasdaq Composite has seen an impressive 15% increase year-to-date, which is double that of the S&P 500 index over this same period. This suggests investor confidence in tech stocks despite economic uncertainty elsewhere across industries, such as retail or hospitality, where many businesses have had to close due to lockdowns and other restrictions imposed by governments around the world.
Investors appear willing to take risks with technology companies they believe can survive whatever comes next; those with strong balance sheets and innovative products or services seem particularly attractive at present given their potential for long-term growth even if short-term profits may suffer from current conditions. With more stimulus packages being announced worldwide there could yet be hope for a recovery before 2021 ends – but only time will tell if investors’ faith pays off!
Read more at Yahoo Finance
