Test / Remain cautious with the high value Australian Growth Sector

By Market Matters 05 June 19

Remain cautious with the high value Australian Growth Sector

The high flying ASX200 Software & Services Index has struggled recently with the IT Sector occasionally the weakest on the boards.

We have no interest in buying the dip in these stocks believing it to be the most expensive growth sector on the planet. It appears to have been chased higher by Fear of Missing Out (FOMO) and momentum systems but when it corrects, as it did in late 2018, we can see the picture again turning very ugly.

Our general view is there’s better value in global growth and IT stocks.

ASX200 Software & Services Index Chart