Tech Stocks Boom Amid Labor Shortage: Fundstrat

Labor Shortage to Shift Stock Market Sector Allocation, Predicts Fundstrat

According to Fundstrat, a decadeslong labor shortage is expected to shake up the sector allocation of the stock market. The firm’s cofounder and head of research, Tom Lee, believes that the technology sector will eventually make up more than 50% of the S&P 500. This projection is based on historical data that shows technology stocks outperforming the S&P 500 during periods of extended labor shortages, such as in the 1950s, 1960s, and 1990s.