INSUBCONTINENT EXCLUSIVE:
By Lu WangWith tech stocks suffering their worst month relative to the broader market in more than a year, Goldman Sachs has some advice for
percent above the SP 500 Index, well below the average premium of 30 percent over the past three decades
And for an industry with profit margins twice as high as the broad market, such a valuation premium is warranted, according to Kostin.
At
the communication services group
At an average 158 basis points underweight, large-cap core funds have never shunned the industry like this in the past five years.
Tech
shares have tumbled 7 percent this month, trailing the SP 500 by 2 percentage points, the most since June 2017
The slump called into question the leadership of an industry whose gains in the past three years have doubled the market.
Tech stocks are
the latest casualty in a market rout spurred by fears over rising interest rates and a growth slowdown, according to Mike Wilson, chief
United States equity strategist at Morgan Stanley
next year, propelled by solid revenue growth and strong cash flow, much of which are likely to be returned to shareholders in the form of
dividends and share buybacks.
