The Only Game in Town
Tech is crowding out other sectors
Everyone likes Tech at the moment. It is ranked #1 in every region apart from the Eurozone, where it is #2 and likely to rise within a few weeks. However, it is starting to crowd out overweight positions in other sectors and the level of dominance is becoming dangerous in China. Other sectors and Tech in 1999 have enjoyed this level of dominance in the past but the longest similar episode was seven months, which would take us through to Q2 2018. After that a period of sustained underperformance nearly always follows.