The global technology fund manager at Britannic, Margaret McLaren, claims the sector will do better ...
The global technology fund manager at Britannic, Margaret McLaren, claims the sector will do better in 2002 but warns investors not to expect high returns.
At the Investment Week Forum, in London, she said investors in the sector had suffered because of the global economy slowdown last year which led to many companies cutting their IT budgets. This is in addition to a reduction in inventories which led to a poor demand and supply situation, she explained.
'This was not a good background for technology shares, especially given their high valuations. The technology index underperformed the world index over the year. But in the last three months of 2001 we saw the first signs of improvement appearing and the year finished on a better note,' she said.
'Economic indicators, particularly in the US, are showing signs of recovery, and it is unlikely that there will be further interest rate cuts there. Within the technology sector, we have seen some software companies forecasting a better outlook for IT spending plans.
'So long as you believe that the economic recovery will continue, the technology sector looks set to outperform in 2002.'
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