US tech sector projections
The US economy is reportedly fast recovering from the tumultuous year that was 2020, so much so that analysts are painting a more positive picture of 2021 and 2022. Prompted by the move to digital operations and remote working last year, the technology sector is amongst those that experienced the most growth. In fact, it is expected to continue on this upwards trajectory for the coming year as well. Initially projected to grow by 6% in 2021, experts are now singing a different tune. According to reports, the US tech sector is now projected to grow by 7.4% in 2021 and 6.7% in 2022. The demand for tech services and products and e-commerce is likely to increase amid the current conditions that people find themselves in. Technology remains a crucial part of people’s personal and professional lives, more so with the level of caution that is being exhibited amongst people that has put a high level of strain on interpersonal relationships.
Motivation behind the expected growth
Despite the tech sector being so broad and all-encompassing, growth is projected across its various product and service categories. Fuelled by many people and companies’ increased usage of work-from-home platforms or home entertainment alternatives, software is expected to be the best performing segment in the tech sector, due to the high volume of purchases and subscriptions. In extension, tech consulting and integration services are also expected to see an increase in demand, which can be attributed to the need to troubleshoot some systems or introduce entirely new ones for teams working from different parts of the world.
Equipment and telecommunications services, on the other hand, are expected to see moderate growth. This is due to the gradual return to pre-2020 conditions as some companies are resuming with earlier working conditions. This, in turn, is expected to lead to a slow but increasing demand for office equipment and resources as a regular business activity is reinstated.
Why you should consider investing in the tech sector
Should one be looking at various investment options, the US tech sector is said to be a worthwhile consideration because of the reasons mentioned above. Experts suggest adopting a hybrid investment strategy to offset any potential losses amid the uncertainty. Essentially, experts are advocating for a strategy that involves investing in both cloud and physical or on-premises systems. This is mostly because some companies have also adopted hybrid-type operations, alternating between a remote and in-office setup. As it stands, some of the most valuable companies in the world are tech companies, such as Apple, Microsoft and Amazon, to name some of the most acclaimed. Another motivating factor for investing in the tech sector is the growing conversation on and implementation of artificial intelligence and the Internet of Things, with stocks in those two fields appealing to many.
Understanding the continued strength and resilience of the American economy and currency, many have championed trading in US Dollars as an option. Not only is the Dollar the most widely accepted currency across the globe, it also forms part of the major currency couples in the world because of the economic activity of the country.