World’s largest money manager isn’t giving up on tech stocks yet

Pedestrians walk past BlackRock Inc. headquarters in New York, U.S, on Wednesday, June 11, 2018. Photographer: Bess Adler/Bloomberg INTERNATIONAL – BlackRock Inc. is still bullish on tech stocks. While many investors have identified challenges in the sector after a lacklustre 2018 that saw the Nasdaq Composite Index’s first annual decline in seven years, the world’s largest money manager is staying the course on the long-term trend, according to its chief equity strategist Kate Moore. “We’re not giving up on technology,” she said in a Bloomberg Television interview with Shery Ahn and Haidi Lun on Wednesday. “The tech sector is still a well-liked and well-loved sector across BlackRock.” Tech shares from the U.S. to China have languished in the past year as trade tensions between the two nations and concerns over slowing economic growth have hit the sector. The NYSE FANG+ Index lost almost half a trillion dollars in value last year from the end of January. Regulation and policy have also damped sentiment as U.S. tech giant Facebook Inc. has faced a number of controversies regarding personal data protection and the shock arrest of Huawei Technologies Co.’s finance chief last year shone an unprecedented spotlight on China’s largest technology company in the midst of U.S.-China tensions.
Companies are absorbing those changes and willing to work in that environment, Moore said. Investors should look to own both U.S. and Chinese technology stocks for diversity in the long term as they operate in different markets and have less overlap than often assumed, she added. Moore is hopeful ongoing trade talks will conclude with an agreement between the two nations to explore “opportunity for cooperation” in tech. BlackRock’s top call for the year is healthcare stocks for their increasing use of technology and innovation, Moore said.

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