Tech Stocks Could Hit New Highs In 2021: UBS

Tech stocks have seen a correction in September with the Nasdaq 100 index declining 5.7%, the biggest pullback since coronavirus led decline March. However, history suggests that tech stocks could rebound to new highs in 2021 according to UBS analysis, reports the Financial Times.



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UBS Investment Thesis: According to investment research firm UBS, trading patterns of the last five years show that mid-cycle corrections in global tech stocks lasted an average of a month from peak to trough, and the sector lost up to 11%. The scale of rebound over the next six months was an average 20%.

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2020 has been a volatile year for stocks due to the coronavirus pandemic. Even after the 5.7% decline in September and 7.7% decline in March, the Nasdaq 100 index is up 30% in 2020.

Applying a similar pattern to Nasdaq 100, following its fall in September,

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