Labor Shortages to Fuel Tech Stock Surge, Fundstrat Predicts 50% S&P 500 Representation
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Fundstrat believes technology stocks will grow to 50% of the S&P 500 amid labor shortages, increasing demand for automation & AI.
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Historically, tech stocks have significantly outperformed the S&P 500 during extended labor shortages like in the 1950s, 1960s, and 1990s.
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The current labor shortage began in 2015 and is expected to last until 2047, benefiting tech stocks.
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Information technology already makes up 30% of the S&P 500, jumping to 43% when including broader tech companies.
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Fundstrat expects strong gains for tech stocks and mega-cap tech companies to continue in 2024.