The consequences of the pandemic induced market crash, the investors questioning whether those stocks are be able to maintain their momentum if jobs do not recover soon. Nasdaq 100 index notched a new intraday high, it’s the first major stock benchmark to post new high since the crash. Numerous techno companies and their investors have been benefited from the pandemic by adapting to e-commerce, remote work and cloud computing. The Nasdaq composite has more resilient than any other broad market benchmarks.
Jamie Cox, managing partner for Harris financial group says cash rich technology companies have become a safest play than crowding investors into a small number of stocks such as Amazon.com, Apple Inc. etc. Cox also said “Owning tech in this environment is considered not speculative but safer than consumer brands that would have traditionally been safe”. Well known companies like Amazon, Facebook and zoom have already reached past their heights before the Covid crisis.
Jim Callinon portfolio manager of Osterweis Emerging Opportunity Fund, said, “We really need to make sure that consumers are okay and feeling good within their economic viability”. Brian Jacobsen said “Businesses are feeling pressure to invest in technology as employees who are accustomed to working from home will want to continue doing so with better in-home set-ups”.But at some point, there needs to be an economic turnaround to justify the spend.”