By Ong Ai Ling, CFA
Associate Director, Asian Equities
Despite COVID-19 wrecking havoc on Main Street’s real economy, stock valuations on Wall Street have diverged significantly from the outlook for the real economy, particular in the technology sector where optically valuations are near all-time highs. In our view, the valuation in the technology sector is expected to grow, as we believe that real structural growth is increasingly scarce in the world whilst interest rates continue lower (and threaten to turn negative).
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