Investors should hold off on diving back into shares of large technology companies as the industry faces regulatory challenges and will be hurt again by rising borrowing costs, according to the wealth management team at UBS. Major technology shares overall have recovered from their lows of the year. High-flying tech stocks were ditched by investors earlier in the year as buyers sought companies they believed have more direct exposure to the reopening of the economy. The Nasdaq Composite is up about 10% so far this year and the NYSE FAANG+ index that tracks mega-cap tech stocks has picked up about 9%.
Investors shouldn't rush back to big tech stocks as reflation and reopening trades are better near-term bets, says UBS (FB, AAPL, GOOG, AMZN)