Koesterich on Investopedia also maintained that BlackRock still favors technology stocks as earnings growth has been th emain driver of recent gains.
Additionally, we are witnessing rapid growth in information security, with money managers competing with Silicon Valley startups to attract PhD’s in machine learning.
“Virtually every company is engaged in a war of attrition with cyber criminals, with the average breach going undetected for 200 days! The result? A race to obtain state-of-the-art cyber weaponry between corporate security and hackers who are driven by age-old motives like greed (criminals), ideology (activists) and revenge (disgruntled ex-employees),” Koesterich added.
Investments into the cyber security space is also quickly gaining momentum. For instance, the PureFunds ISE Cyber Security ETF (NYSEArca: HACK), which began trading in November, has grown to $493.1 million in assets under management. [JPMorgan’s War on Hackers Bodes Well for Cyber Security ETF]
For more information on the tech space, visit our technology category.
Max Chen contributed to this article.