Excerpt from CNBC quoting DataTrek co-founder Nick Colas:
…. “DataTrek’s Nick Colas is less bullish on software, and said he doesn’t see it as necessarily “safer” than tech companies that deal with hardware. Enterprise software companies still need companies willing to spend money — which could be threatened by waning business confidence thanks to tariff uncertainty, Colas said.
There are a few factors that might keep the sector in vogue. Technology still has the highest net margin of any sector, and falling interest rates help higher valuation sectors, since investors are desperate for some sort of yield. Colas also said tech is still “the only secular growth story around” as companies use their free cash flow to buy back stock.
“Ultimately investors don’t see many sectors that are as attractive over the long term,” Colas said. “It’s hard to get too bearish on Tech, even with everything that is going on”….
Read the full article here on CNBC!