Despite COVID-19 and the resulting economic shutdown placing 30 million American jobs at risk and industries such as banking, retail and energy continuing to languish, technology has remained resilient. In fact, technology companies have managed to help the Nasdaq Composite Index erase year-to-date losses as of Thursday, May 7. Conversely, as technology stocks soar, the average U.S. stock remains down 18% with forecasts for the economy, earnings and the containment of the virus remaining scattered.
One of the main reasons behind this surge is due to companies’ newfound reliance on automation and online services amid stay-at-home orders. But that’s not the only secret to this sector’s success. Delegate Advisors Director of Portfolio Management Dunkin Allison offered further insight on the secret to technology’s recent dominance in a recent Yahoo Finance article.
“I don’t think any full sector is bullet-proof to this,” Allison explained to the publication over the phone. But “technology is in a position, given the nature of their business models, to be more defensive, experience less pain and also come out of this a fair amount stronger than they were, say six or 12 months ago.”
To read the entire Yahoo Finance article featuring Delegate’s Dunkin Allison, click here.