Heightened regulatory risk, the relentless outperformance of growth stocks across varying market conditions and an increasing number of retail investors buying and selling shares mean investors should prepare themselves for "frothiness" in technology share prices, according to Brewin Dolphin's David Hood.
However, the head of central investment solutions still believes the tech sector will fare well over the long term, and therefore holds an overweight via several US equity funds across Brewin Dolphin's model portfolios. "What has been interesting is the growth momentum we have seen. Not only did growth outperform in Q1, it outperformed in Q2. "Those two periods had very different characteristics; one with a strong sell off, and one with a strong rebound. So, there are things to be wary of," he explained. "The other factor to be slightly mindful of is potential frothiness in the gro...
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