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Investors’ considerations of price in technology investments

Investing in technology can be costly at the moment, with some US tech giants experiencing incredibly high valuations. However, there are ways for wealth managers and investors to access the opportunity while keeping valuation in mind. According to Dan Smith, senior equity analyst at Canaccord Genuity Wealth Management, investing in technology is expensive at the moment. Timing when to invest and when to exit, while maximizing returns, is a challenge for investors.

Storm Uru, who co-manages the Liontrust Global Technology fund, believes that the opportunity in technology is significant and just beginning. However, he is cautious about excessive valuations and sets target prices for the stocks he owns. If a stock exceeds the target price, he sells it unless the fundamental reason for owning the stock has improved. Smith focuses more on companies that facilitate artificial intelligence (AI) rather than pure AI companies due to more attractive valuations in that sector.

Uru also believes that companies benefiting from AI, rather than being AI companies themselves, are worth investing in. This approach has become increasingly interesting to him. Overall, both experts emphasize the importance of considering valuation when investing in technology while also being aware of the potential for exponential growth.

Investors looking to invest in technology must keep an eye on valuations while weighing potential gains against potential risks. The key is finding balance between these two factors without missing out on long-term opportunities.

While investing in technology can be risky due to high valuations and uncertain market conditions, there are ways for wealth managers and investors to navigate these challenges successfully.

Both Dan Smith and Storm Uru recognize that investing in technology requires careful consideration of valuation while taking advantage of opportunities for exponential growth.

If you’re interested in investing in technology but don’t want to take unnecessary risks or miss out on valuable opportunities, consider working with a professional financial advisor who can help you make informed decisions based on your unique financial goals and risk tolerance.

Investing in technology can be costly at the moment due to high valuations of some US tech giants. However, there are ways for wealth managers and investors to access this opportunity while keeping valuation in mind.

According to Dan Smith and Storm Uru, both experts believe that investing

By Samantha Jones

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