Fundstrat's Tom Lee believes that the technology sector will one day make up 50% of the S&P 500.
During periods of extended labor shortages, like during the 1950s, 1960s, and 1990s, technology stocks significantly outperformed the S&P 500.
"Technology demand, in our view, will accelerate as companies seek to offset labor shortage," Fundstrat said.
"The outperformance of technology during periods of labor shortage is substantial — and we believe the forecasted 2015 to 2047 [labor shortage] to benefit technology stocks," Fundstrat said in a recent note.
"We like technology/FAANG $XLK $QQQ," Lee said, referring to the mega-cap tech stocks, the technology sector, and the Nasdaq 100.
Persons:
Fundstrat's Tom Lee, —, Tom Lee, Fundstrat, Lee
Organizations:
Service, Technology, Nasdaq
Locations:
Fundstrat