Forget FANG - 'old tech' holds key to US returns

Strong fundamentals in Cisco and Microsoft

Last year's volatile market ride trickled over to the beginning of this year as investors fretted over global growth (particularly China), divergence in monetary policies across regions, Brexit, the Fed rate and the continued slump in oil price, writes Fidelity's Angel Agudo.

Nevertheless, as investors continuously attempted to price the impact of all these issues on the real economy and on the future revenue streams of companies, broad based over- and under-reactions generated fundamental buying opportunities. In the recent past, within technology, the market's spotlight has been on growth stocks, particularly the 'FANG' stocks (Facebook, Amazon, Netflix and Google). However, I believe the multiples of these 'in vogue' companies have increased significantly and one should be mindful that any potential de-rating or change in sentiment could translate into ...