Tencent Holdings Ltd (HKG: 0700) and
Alibaba Group Holding Ltd (NYSE: BABA).
“Investors shouldn’t rotate out of mega-tech to value because mega-tech
are value,” said Macken.
Haven’t tech shares had a pretty good run already?
Macken acknowledged many investors would think the massive technology companies have already had their big run.
“After a strong 2020, many investors are worried all the ‘easy money has been made’ – a commonly used phrase we hear in our industry (which also suffers from acute hindsight bias).”
Investors are also worried about higher interest rates, he admitted, and the compression on earnings multiples that would have on growth stocks.