Scott Phillips BEST IN BREED
SECTOR TECHNOLOGY
What a difference (most of) a year makes. The Australian All Technology Index hit an all-time high (it’s only a relatively young index, to be fair) in November last year. Six short months later, it had lost a full 37% of its value, as rising inflation, fears of a slowing economy and – the mother of them all – rising interest rates sent investors scurrying away in fear.
Some of that fear is warranted – we have already seen quite a few private technology businesses go broke as venture capital dried up and they simply ran out of money. Fears are building that the same fate awaits cash-burning ASX companies in the near future.
And even those that don’t need to raise fresh capital have been hit hard, with investors (rightly) prepared to pay less for future earnings, given the higher prevailing – and future – interest rates.
This story is from the July 2022 edition of Money Magazine Australia.
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This story is from the July 2022 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
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