Tech is currently driving the world’s economy while finance is taking a passenger seat. This is even more evident during Covid-19 – tech adoption was accelerated as consumer behaviours were reshaped. Investors have recognised this and have flocked to tech stocks because of their increasing influence and importance. Investors are also paying less attention to valuations. However, technological advancement isn’t equal. The U.S. and China dominated the tech space, resulting a split between the haves and have nots, the new and the old economies. Countries with little tech exposure in their stock indices generally did poorer. That explains the lacklustre Singapore stock performance.
