Global tech stocks: Where to find value

Global tech stocks have been a hot topic of discussion among investors and analysts as they navigate the market movements that are shaping the industry. Craig Erlam, Senior Market Analyst at OANDA, recently joined CNBC Africa to share his insights on the potential comeback of tech stocks and where to find value in the market. Erlam pointed out that hedge funds are diving back into beaten-down tech stocks, anticipating a rebound in the sector. He highlighted the fact that peak interest rates and inflation are likely behind us, which could lead to more stability in the market. Despite the challenges tech stocks have faced in the past year, Erlam emphasized the importance of considering the longer-term picture and the proven track record of many tech companies. While there are headwinds such as difficulties with advertising and logistics, Erlam believes that tech stocks still hold immense value, especially considering the significant decline they have experienced over the last 12 months. When asked about the timing of investing in tech stocks, Erlam cautioned against trying to pick the bottom of the market, noting that it is an impossible task. He advised investors to focus on the long-term horizon and consider the potential value of tech stocks in the coming years. While there may be short-term fluctuations due to Federal Reserve's messaging on inflation and interest rates, Erlam believes that tech stocks are positioned for growth in the future. The semiconductor industry has also been in the spotlight, with concerns about a split between East and West and the impact on global supply chains. Erlam highlighted the need for diversification and the challenges posed by geopolitical risks, emphasizing the critical role of semiconductors in various markets. Regarding investment opportunities, Erlam suggested that tech stocks still offer value despite the recent market trends. He also mentioned gold as a potential asset to consider, given the current economic environment and the potential for central banks to unwind tightening measures in the future. He emphasized the importance of assessing risk tolerance and considering different investment options in the current market landscape. Overall, Erlam's insights shed light on the opportunities and challenges facing global tech stocks and the importance of a strategic approach to investing in the tech sector.