• Thu. Jun 13th, 2024

Taking a Cautious Approach to Investing in Technology: Balancing Opportunities and Valuations

BySamantha Johnson

Mar 25, 2024
The Influence of Price on Technology Investments for Investors

Investing in technology can be a challenge at the moment, as valuations for many companies in the sector are high. Wealth managers and investors are looking for ways to access opportunities while keeping valuation in mind.

Timing plays a crucial role in determining when to enter or exit the market to maximize returns. Storm Uru, co-manager of the Liontrust Global Technology fund, emphasizes the significant opportunities available to investors in the technology sector, but he is cautious about excessive valuations. He maintains a target price for the stocks he owns and if a stock exceeds the target price, he would consider selling it.

Uru believes that focusing on companies that benefit from artificial intelligence (AI), rather than AI companies themselves, can offer more attractive valuations. Dan Smith, senior equity analyst at Canaccord Genuity Wealth Management, also prefers to look at companies that facilitate AI rather than AI companies directly as he sees more attractive valuations in that area. By focusing on companies that harness AI capabilities, investors can access the benefits of technological advancements while also considering valuation factors.

By Samantha Johnson

As a dedicated content writer at newsanguinely.com, I weave words into compelling stories that captivate and inform our readers. With a passion for storytelling and a keen eye for detail, I craft engaging articles that shed light on the latest news and trends. When I'm not typing away at my keyboard, you can find me exploring new ideas, researching diverse topics, and striving to deliver content that resonates with our audience. Join me on this journey as we uncover the stories that matter most.

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