Separating the Noise from (Encouraging) Fundamentals During Tech Sector Volatility
A recent bout of elevated volatility in the technology sector caught the attention of many investors. Not surprisingly, this led to some hand-wringing concerning valuations, the narrowness of the sector and the sustainability of growth rates. We, on the other hand, view much of the recent market movement largely as noise. In fact, we’d actually prefer to see greater volatility in the themes that, in our view, are dramatically reshaping the technology landscape over the medium to long term. Individual companies tied to secular growth themes stand to play out over years – not quarters. We believe stocks often tend to be more volatile than their underlying businesses.
Originally Published at: Separating the Noise from (Encouraging) Fundamentals During Tech Sector Volatility