View more on these topics

Invesco technology probe

The end is nigh for technology stocks, according to Invesco.


As part of his presentation on “meeting the new European environment”, Invesco head of pan-European equities Rory Powe claimed the distinction between technology and non-technology stocks will disappear over the next few years.


The fund manager argued the phrase “internet company” will be used less and less, as investors assume all companies include the net in their business strategies.


Powe says: “As technology becomes more ubiquitous, you have to ask the question: &#39Will their be such a thing as a &#39technology&#39 company anymore?”


He also claimed Invesco put priority on going beyond investing in the “dot.coms” and looked at “technology enabling” companies, or products which provide content for the new media.


Powe says: “We need to be much more sceptical about the dot.coms. The internet dismantles the barriers to market entry but this is fraught with problems.


“The reason why a lot of internet investment&#39s don&#39t make any money is because they are forced to spend huge amounts on marketing to get their brand known.


“In these circumstances it&#39s the advertising agencies and content makers who are sure to be the winners.”


As well as looking at the visible front end of e-commerce the “back end” should not be overlooked, according to Powe.


He says: “You have to look at what happens behind the scenes of selling and delivering goods and services over the internet. Supply chain companies, including haulage and logistics will benefit from the technology boom.”


Powe made a comparison between the widely-reported tech frenzy and the North American gold rush, saying: “Its not just the people looking for gold we should watch, but also those providing the picks and shovels.”



Recommended

NatWest pledge to hand out £3.5bn

National Westminster Bank has promised it will return £3.5bn to shareholders in its final defence bid against Royal Bank of Scotland and Bank of Scotland.The beleaguered bank guaranteed if shareholders allowed it to remain independent it would immediately launch a £1.5bn tender offer to buy back its own shares and to pass on the proceeds […]

Stakeholder popularity stakes

Pension providers have rubbished a report by Deutsche Bank claiming stakeholder will double the UK&#39s pensions market in the next ten years as “far too optimistic”.Providers say assumptions of stakeholder take-up made by the report are way over the top even exceeding Government hopes.Deutsche Bank bases its estimates for the growth of the pensions market […]

FSA e-probe

The Financial Services Authority is starting its consultation process on how the alternative share trading systems and electronic exchanges should be regulated.The consultation comes amid a movement away from traditional stock exchanges to electronic communications networks.One of the regulator&#39s concern is how fund manages and equity trading houses can offer the best price available, which […]

INDEPENDENT VIEW

People are resistant to change even if it means that change will put them in a better position. Change, however, is being forced upon the financial services profession with considerable speed and doing things the way we have always done them is no longer an option. Let&#39s face it, being an IFA is not easy. […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment