2024-01-03 03:47:00
Invbesting.com – While more and more analysts are worried regarding a potentially difficult 2024 for stocks, particularly in the technology sector which has grown strongly in 2023, others remain very optimistic for this year, but also beyond.
This is particularly the case for Gene Munster, managing partner of Deepwater Asset Management, according to whom a bull market might drive technology stocks upwards over the next five years.
Speaking in an interview with CNBC on Tuesday, the investor predicted that 2024 would mark the start of a multi-year bull market in the technology sector.
“I think we’re entering a three- to five-year bull market in technology,” Munster said, noting that “this market is powered by artificial intelligence,” and that it’s “not regarding not interest rates, but a fundamental change in productivity”.
According to him, the markets will therefore “enter the first year of what will be a technological bubble, which will develop over the next three to five years”.
Some analysts have warned of a speculative bubble forming, given the outsized gains notched by some of the market’s biggest winners last year, including NVIDIA.
However, Munster believes this is a normal and sustainable situation, considering how big of a game changer AI generative technology will prove to be.
“It’s the only logical outcome, when there’s a seismic shift like AI, to produce a bubble,” he said, emphasizing, however, that he doesn’t think it’s the “magnificent 7 ” which will dominate the market this year, but rather small-cap technology companies, forecasting that the growth stocks of the index will outperform those of the index.
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