New research from ETP provider GraniteShares shows professional investors plan to increase their exposure to the tech sector over the next 12 months despite current pressure on valuations of leading US tech stocks.
More than two out of five (42%) say they will increase their own portfolios concentration of tech stocks over the next year with 12% planning to dramatically increase their exposure. Just 24% plan to cut their tech investments while 23% will maintain their holdings.
The study with hedge funds, wealth managers, IFAs, fund managers and institutional investors shows they are advising retail investors to follow their lead. Around 47% believe retail investors should increase their tech exposure while just 30% believe they should reduce it and 23% maintain it.
Concerns about inflation and action from central banks to tighten monetary policy to stop economies overheating as well as worries about tech stocks being overvalued has hit prices recently.
However, research for GraniteShares, which offers UK sophisticated investors a suite of index ETPs offering 3x short and 3x long positions on a range of single stock large US tech companies including Facebook, Amazon, Apple, Netflix, Alphabet, Google, Tesla, and Microsoft, as well as baskets or combinations of some of these stocks, found high levels of confidence in the medium and long-term outlook for the sector.
Around 75% of those questioned said now is a good time to buy large US tech stocks for investors who take a medium term view over one to three years. They are slightly more confident about the long-term view over three to five years. Around 78% believe it is a good time to buy large US tech stocks for the long-term.
Will Rhind, Founder and CEO at GraniteShares said: “The short-term outlook for US tech stocks may be cloudy and commentators are talking about a tough summer for the sector.
“Professional investors are however increasing their exposure to the sector and are very confident about the medium term and long-term outlook.”