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.
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%.
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,