Technology equities will always be plagued by rumours of a bubble after the dotcom crash but one economist is urging Australian investors to snap up US tech stocks.
BetaShares chief economist David Bassanese believes US tech stocks are an ideal investment for local investors looking to diversify beyond the resources and financial services dominated Australian equity markets and gain exposure to the strengthening US dollar.
"Tech valuations are not yet overly stretched," Mr Bassanese said. "The Australian market has almost zero weight in technology whereas those listed on Nasdaq are streaking ahead."
The Nasdaq is dominated by tech companies, including Google with a market cap of $US364.7 billion or Apple with a market cap of $US741.4 billion.
Despite steady growth over eight years, fears of a bubble continue to hold investors back from backing high-growth companies.