Holding my nerve on technology

Holding my nerve on technology


There was no stopping the US equity market in August, especially technology stocks. The Nasdaq composite was up 9.6 per cent and the S&P 500 gained 7.0 per cent. They are up 31.2 per cent and 8.3 per cent, respectively, this year, and both ended the month at or close to all-time highs. Highlights included Apple (US:AAPL) becoming a $2 trillion market capitalisation company, only two years after it hit a $1 trillion valuation. Tesla (US:TSLA) continued to defy logic, with the share price up more than 400 per cent this year. The Federal Reserve's determination to boost growth and stoke inflation led to a sell-off in US Treasuries. With interest rates likely to stay low for longer and with the possibility of further monetary and fiscal stimulus, equities are seen as the only way of achieving a positive real return. 

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