Equities Quick Take – A healthy tech correction

The global tech sector has fallen 8% since the market peak, and tech-heavy investment styles such as growth, quality, and momentum have suffered. However, losses have been more limited elsewhere with small caps and value stocks proving relatively resilient.

What you will learn:

• We see the current tech-led sell-off as a healthy correction, not the start of something more protracted. We think equities are underpinned by resilient activity, a broadening EPS recovery, and the prospect of imminent rate cuts.
• Small cap and value stocks have outperformed, and we expect this to continue as the global economy heads for a soft landing and investors rotate away from expensive tech names.