BlackRock’s Li Sees Tech ‘Still Reasonably Well Supported’

The video discusses the potential for further market corrections due to high valuations, particularly in technology sectors sensitive to yield movements. Despite recent pressures, technology remains supported by long-term digitalization trends accelerated by the pandemic. Investors are using current corrections to increase technology holdings. The video also emphasizes the importance of balancing technology investments with cyclical exposures, highlighting sectors like US small caps, value stocks, industrials, and energy as part of a broader portfolio strategy.

What is a key reason for the recent pressure on technology stocks?

• Their long duration nature

• Government regulations

• High inflation rates

• Increased competition

How has the pandemic influenced the trend of digitalization?

• It has reversed digitalization

• It has accelerated digitalization

• It has had no impact

• It has slowed down digitalization

What strategy are investors using during market corrections in technology stocks?

• Switching to bonds

• Using corrections as opportunities to add to their holdings

• Selling off their holdings

• Holding their current positions

What is the suggested approach to balance technology holdings in a portfolio?

• Investing solely in technology

• Avoiding small-cap stocks

• Focusing on international markets

• Barbelling with cyclical exposures

Which sectors are recommended for investment to align with the cyclical reopening theme?

• Industrials and energy

• Consumer goods and services

• Real estate and finance

• Healthcare and utilities