Where is the market support coming from?
Lipper data (below) shows net fund outflows for Equity funds. Therefore perhaps a sector rotation into Technology funds is providing support for Technology names. We have yet to find fundamental data that would support a bullish near-to-intermediate-term outlook for Technology names, with the exception being the leading streaming services and video communication tools.
We place a premium on quality companies led by quality CEOs. This principle is especially true during times of uncertainty, when companies have little visibility into the near-term. Senior management experience matters. We believe this is a key reason why new CEOs have recently taken leaves of absence only to be replaced by Chairman/former CEOs.
Examples of quality CEOs and Technology names? Look no further than CEORater’s 2019 Technology CEOs of the Year and our CEORater Long-Term Portfolio which is not yet a product offering: