Interesting perspective on why tech is rallying in 2023. Lots of opinions out there and your US $ based POV is likely one of the contributors.
I think it also has to do with positioning...specifically lack of positioning in tech. Funds and retail investors have been underweight tech as we started 2023.
The recent banking crisis spooked confidence in the US financial system and investors sought low risk assets such as treasuries, gold, bitcoin and large cap tech. Large cap tech is a recession resilient sector.
The underweight in tech situation started reversing itself during the last two weeks of March leading the QQQ and NDX higher.
Funds quarter end window dressing (buying better performing stocks to list as holdings in their quarterly report) was also likely a strong contributor during the end of March.
Now it will be interesting to see if this trend continues or reverses leading into Q1 earnings season.
Interesting perspective on why tech is rallying in 2023. Lots of opinions out there and your US $ based POV is likely one of the contributors.
I think it also has to do with positioning...specifically lack of positioning in tech. Funds and retail investors have been underweight tech as we started 2023.
The recent banking crisis spooked confidence in the US financial system and investors sought low risk assets such as treasuries, gold, bitcoin and large cap tech. Large cap tech is a recession resilient sector.
The underweight in tech situation started reversing itself during the last two weeks of March leading the QQQ and NDX higher.
Funds quarter end window dressing (buying better performing stocks to list as holdings in their quarterly report) was also likely a strong contributor during the end of March.
Now it will be interesting to see if this trend continues or reverses leading into Q1 earnings season.