Tags: Tech | Investors | Economic | Growth

WSJ: Tech Investors' Worst Fear Might Be Surging Economic Growth

WSJ: Tech Investors' Worst Fear Might Be Surging Economic Growth
(DreamsTime)

By    |   Wednesday, 10 May 2017 01:26 PM

Tech investors reportedly aren’t looking forward to the one bright spot that you’d think all investors await: economic growth.

Investor have been flocking to the tech companies that sport big profit growth as the economy lumbers along.

“From here, the biggest risk for tech investors might be the long-promised upswing for the economy. A pickup in economic activity likely would lift cyclical corners of the stock market and prompt profit-taking in tech, something investors got a brief taste of last year,” The Wall Street Journal reported.

“Right now that looks like a distant threat. Apple Tuesday notched its 19th record close this year and a market capitalization north of $800 billion — a first for any U.S. company. Apple’s advance this year comes as the U.S. economy grew in the first quarter at its meekest pace in three years,” WSJ.com reported.

Other fast-growing tech stocks are soaring: Facebook has climbed 31% this year and Google parent Alphabet has added 21%. Online retailer Amazon.com is up 27% and Microsoft has climbed more than 10%, the Journal explained.

To be sure, entrepreneur, stock trader, television personality and author Adam Mesh told Newsmax TV that not every section of the stock market is a safe bet just because investors have enjoyed a bull run since Donald Trump’s presidential victory.

“Tech has remained strong, it had a good first quarter that it's finishing up right now and with innovation and growth, tech seems a nice place to be not only for stability but also for upside,” said Mesh, who starred in the 2003 NBC show “Average Joe.” Mesh starred in the spin-off "The Average Joe: Adam Returns."

“The sector I'd stay away from is the retail sector,” he told “The Income Generation Show.”

“It's hard to explain how it got here. All of last year seemed surreal in how we went up and then the expectation was going into the election if Trump became president that we'd go down, but then we just continued higher and now it seems that everybody is bullish,” he said.

 (Newsmax wires services contributed to this report).

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Tech investors reportedly aren't looking forward to the one bright spot that you'd think all investors await: economic growth.
Tech, Investors, Economic, Growth
347
2017-26-10
Wednesday, 10 May 2017 01:26 PM
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