TEAM Asset Management’s global weekly market review for week commencing 5th February. TEAM Asset Management is a Jersey-based independent asset management company of AIM-listed parent, TEAM plc (LON:TEAM).
The main American index, the S&P500 reached a record close of over 5,000 last Friday. Yet again strong performances from the Technology sector led the charge and sentiment improved as company announcements of share buy backs increased by 10% compared with this time last year.
It suggests corporates are happier with the state of the economy and expect share prices to rise further this year. We also saw the Atlanta Fed Survey estimating extremely healthy economic growth in the US of 3.4% (up from 3% last month) in the first quarter of 2024.
The technology sector makes up a third of the index – a level not seen since the good old days of the ‘dot com’ era. Who can forget the days of ‘hope’ between 1998 -2000 and the extraordinary valuations placed on companies that never ever turned a profit. Comparisons are plentiful but today high valuations are arguably deserved given the exceptional profitability and cash generation of many technology companies. So do not expect the same ‘crash’ in prices that we witnessed in 2000-03 in technology names!
TEAM plc (LON:TEAM) is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM’s core skill of providing investment management services.
