Goldman Says Sell Taiwan Tech Bounce and Picks Some Stocks
- Sluggish global growth is poised to hurt outperforming sector
- Strategists don’t see fundamental arguments helping tech
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The strong performance of some technology stocks in Taiwan this year won’t last, according to Goldman Sachs Group Inc.
A combination of sluggish global growth in the first half of the year, a possible decline in tech earnings in 2019 and high foreign investment in the sector all point to likely underperformance from technology companies in Taiwan, Goldman strategists led by Richard Tang wrote in a note Monday. They said the tech bounce appears to be part of the “laggard rotation occurring in the region,” which is unlikely to last.