Fund managers rotate back into big tech to better ride out possible U.S. recession

Some fund managers are being prompted to rotate back into the big tech and growth winners of the last decade in the hope that they can better weather a possible U.S. recession.

David randall for Reuters:

Many [big tech] stalwarts… have suffered declines on par with or exceeding those in broader stock indexes this year, as jumbo rate hikes delivered by an inflation-fighting Federal Reserve hit the tech and growth names that led markets in previous years.
Since growth companies tend to be less affected by the broader economy’s performance, however, some investors believe the category’s most profitable names may outperform the rest of the market if the Fed’s hawkish policy stance drags the U.S. into recession.
“You are starting to see some cracks in economic growth, which will help select companies that are very well positioned in the technology space,” said Saira Malik, chief investment officer at Nuveen…
Retail investors, meanwhile, have been buying “evergreen large tech companies” such as Apple Inc on recent market dips, according to Vanda Research.
A global poll of investors by Deutsche Bank in June found that 90% now expect a U.S. recession by the end of 2023, up from 78% the month before.

MacDailyNews Take: As during the COVID panic, Apple looks to be a safe haven.
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