The long-term structural bull case for the technology sector and the relative strength of several tech firms during the recession are well established. But we believe the present crisis has also created additional macro tailwinds for tech stocks. ;
A lot has changed in the month since we set out our thoughts on what comes next for the global economy. The range of outcomes has narrowed a little, but there remains huge uncertainty about the virus, the speed of recovery, the lasting damage to output, and inflation implications. ;
Much has been made of inflation as the potential cause of technology stocks’ recent underperformance. While on Bloomberg TV, I explain why we think that’s coincidental, not causal, and how tech could actually benefit from longer-term inflationary pressure.