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A sideways equity market running alongside rising earnings has opened a buying opportunity in technology.
Truist makes that case, arguing the sector has gone through a reset that leaves it more attractive relative to the broader market than recent positioning implies. The argument is relative, and the case is specific.
Earnings are moving higher while prices have gone sideways, a combination that has shifted the sector's standing against the rest of the market in Truist's reading. The reset, on the firm's view, has already taken place.
How long that relative advantage holds depends on the earnings trend. If the rising earnings trajectory that underpins Truist's position stalls, the relative attractiveness the firm describes narrows.
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