Vantage point: Investing in innovation  

How to invest in technology in a high interest rate world

  • Understand the impact of interest rates on technology stocks
  • Discover what has been behind the strong share price performance of tech companies
  • Explain how the pandemic impacted tech businesses
CPD
Approx.30min

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These businesses will also have a significant advantage over sub-scale and unproven start-up competitors who may now find it harder to finance unprofitable growth, it is there, rather than in the broader technological universe, that the impact of higher interest rates are felt. 

James Dowey runs the Liontrust Global Technology Fund

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CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. At what level of premium does the technology sector trade to the wider market right now?

  2. What does Dowey believe is the hallmark of real innovation from a company?

  3. What does the author believe caused a "painful reckoning" for technology shares?

  4. What two reasons does the author give for believing that higher interest rates can benefit some tech companies

  5. What was Shopify's share price drop from peak to trough?

  6. Of the share price growth experienced by the tech sector, what proportion does the author say came from earnings growth?

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  • Understand the impact of interest rates on technology stocks
  • Discover what has been behind the strong share price performance of tech companies
  • Explain how the pandemic impacted tech businesses

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