Principal’s Shah Says Tech Is Haven Trade in a ‘Fragile’ Market

Big tech stocks are proving to be a safe bet for equity investors looking for a harbor in a “fragile” market brought about by the Iran war, according to Seema Shah at Principal Asset Management.

Investors want strong balance sheets and positive cash flows, “the moat that sits around a lot of companies — and of course AI technology comes right at the heart of that,” Shah, chief global strategist at Principal, said Wednesday on Bloomberg Television’s Surveillance. “People are looking for something which is almost something of a safe haven.”