Tech stocks have slid after the US Senate passed its version of tax reform.
One analyst at Credit Suisse thinks lower prices means that now is the time to buy.
Strong business fundamentals that have propelled tech will likely continue, leading to strong stock performances for many tech companies.
As tax reform made its way through the US Senate, investors started the bill’s impacts if it passed. On Saturday, the Tax Cuts and Jobs Act did pass, bringing many of the details of the bill to light. That set off a wave of trading for investors hoping to better align their portfolios to take advantage of the Senate’s bill, which still needs to be reconciled with the House’s and signed by the President before becoming law.
Monday and Tuesday saw a general rise in financial stocks and a decline in tech companies. According to analysts at Credit Suisse, though, the rotation will be short-lived.
“TECH+ is our favorite sector given its strong fundamentals,” Jonathon Golub, an analyst at Credit Suisse said. “We believe an investor’s time horizon should determine their focus on tax policy.”
For those investing for the long term, Golub said the tax bill is secondary to business fundamentals. …read more
Source:: Businessinsider – Finance