‘As the parents say, don’t hope to regret it later.’
US investment bank analyst JPMorgan said ‘growth’ stocks led by technology stocks were still ‘expensive’ despite a sharp decline over the past 6 months.
According to JPMorgan analysts, on average technology firms have lost 30% of their value since reaching their peak in September last year.
In addition, fintech firms focusing on technology banking applications declined 40% in the same year.
‘Growth’ stocks, which surged in the Covid-19 era, were in decline this year with Facebook down 38%, Apple down 5.7%, Amazon down 8.5%, Netflix and Google down 35%and 10%respectively.
However, in a note issued by JPMorgan analysts stated that the decline does not indicate that it is cheaper.
He added that banking stocks and commodity -related stocks that benefited from rising oil and metal prices or interest rates were still 'expensive'.
For now, income opportunities for the ‘growth’ sector are seen as less attractive but the focus is more on the bond market which has experienced a sharp rise this year as the world central bank has laid the groundwork for an interest rate hike.
Record low rates over the years have driven tech stocks up but with those rates on the rise, investors may have lost interest in them.
