Tech stocks are the best bet to drive stock market returns
Technology stocks remain investors’ best bet and can continue driving returns in the current bull market, according to Peter Oppenheimer, Goldman Sachs Group Inc.’s chief global equity strategist, even as the near-term risk of a market correction persists.
The Wall Street guru is advising clients to keep their faith in tech stocks after numerous market players got burned last week during a plunge in the Nasdaq 100 Index, driven by some of the frothier tech companies like Amazon.com and Apple Inc.
Goldman is maintaining its overweight recommendation in tech stocks in every region thanks to the sector’s strong cash generation, earnings and stable balance sheets, said Oppenheimer.
In backing some of the biggest stock market winners of the past six months, Oppenheimer is wagering on an acceleration in the “digital revolution” fueled by lockdowns and increased use of the internet and technology as working from home became the global norm.
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