A disaster could be brewing in tech

Tim Hannon, Chief Investment Officer at Newgate Capital, is concerned about the technology sector in Australia. “The level of analysis done on these companies is actually quite poor. The (funds management) industry in Australia really don’t have a great tech background, and they’re analysing and floating companies where we don’t think they got a good level of understanding.” Add to this the fact that a lot of these companies are very early stage, and trading at high valuations; “it’s a recipe for disaster in our opinion, and we would avoid the sector,” he said. Watch the full interview below.