Tech stocks to consider after China-US truce

People shift to conservative investments amid campaign


Since Donald Trump’s election victory in 2016, the two biggest storylines in the investment world have been tech stock supremacy on Wall Street and the U.S. trade war with China.

The tech-tariff saga isn’t fading from the headlines anytime soon, creating opportunities and risks for investors who bet tech will retain its No. 1 performance ranking.

The bullish narrative is that the “Phase One” trade deal sealed between the United States and China late last year signals a thaw in their chilly relationship, eliminating some of the uncertainty in markets and giving a lift to the global growth outlook. The prospect of trade barriers falling, less theft of U.S. tech firms’ intellectual property and an opening of China’s market are all positive drivers for tech firms’ sales and growth.

Tech stocks rein on Wall Street.

Top car picks:See Consumer Reports’ 2020 list of cars, trucks, SUVs

Contigo bottle recall:Replacement lids on 5.7 million kids’ water bottles recalled

“If Chinese competitors can’t rip off or make the same products (as the U.S. firms), I think that would be a positive on profit margins longer-term,” said Matt Sabel, manager of MFS Technology Fund.

The trade disagreements won’t disappear overnight. The Phase Two and Phase Three deals, which will tackle more complicated issues, such as forced tech transfers and emerging technologies such as AI, quantum computing and the 5G network that affect each nation’s economic future and national security, have yet to be fully negotiated.


Source link

Categorized as Top Stories

By Javier Manning

Javier has been in the field of content writing for almost 8 Years as he hails from the Biotechnology background. The edifying articles portray her craving towards language. His keen hobby of reading technological innovations related books or articles has sown the seed of being a well-versed editor with the current scenario of numerous industry verticals. He is one of the valuable assets to this publication. The Industry News Press has awarded him with a senior editors post based on his skillful performance to date.