Hi, I'm John Ettinger, a Senior Portfolio Manager at Federated Kaufmann Funds.
How would you describe the technology sector today?
Well the technology sector is a very exciting space for us and we spend a lot of time meeting with technology companies. We see a lot of opportunities in the areas of cloud computing and software. There's a whole new slew of software as a service companies that are serving companies in many different industries and these SaaS companies, as they're called, allow these companies to have very fast deployments, there's no upfront costs for them, it's a lot easier to maintain and there's very high customer satisfaction here. There's also a lot of fast-growing internet and e-commerce companies and we believe traditional retail is going to continue to lose share and be challenged by the e-commerce companies. So we believe this is a sector that has tail winds for the long term and we're investing in the dominant companies here of the future.
What are the most notable long-term technology trends?
Within the technology sector I spend a lot of my time looking at internet and e-commerce companies. There's a lot of disruption and change going on in this area. A lot of changes in consumer behavior. We're all changing the way we shop, we're changing the way we order goods, order food, the way we book travel, book cars, the way we listen to music and a lot of this is driven by internet penetration and especially high-speed mobile internet penetration. I mean, we're all walking around with what's basically a computer in our pocket. So, these are trends that are here to stay and the companies that we've invested in here should enjoy fast growth for a long time and we're trying to pick the winners of this industry and investing in the companies of the future, today.
Views are as of 10-10-2018 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. Federated Global Investment Management Corp. 18-76268 (10/18)