Non-US Markets Offer Dynamic Technology Investment Opportunities

An established presence in the Northern California private equity investment community, David C. Burke oversees Selby Lane, LLC, in Menlo Park, California. Also an educator, he has taught courses such as World of Investing and International Relations at the University of Virginia McIntire School of Commerce. In addition to these endeavors, David C. Burke stays abreast of trends in the investment industry.

A February 2021 article in Seeking Alpha brought focus to the increasing number of technology investment opportunities to be found in non-US markets. One issue involves investment saturation, with the US technology sector experiencing mega-capitalization trends that have weighted the sector 29 percent in the MSCI USA Index.

While technology stocks are weighted lower in terms of benchmarks in the non-US developed stock market, these markets offer dynamic growth opportunities in areas such as artificial intelligence, cybersecurity, cloud computing, 5G telecommunications, and payment technology. Examples include Israel, which possesses leaders in the field of cybersecurity, and Europe, which has a leading presence in online travel and financial payments services. At the same time, Chinese tech companies, from Huawei to Alibaba, as well as many smaller firms, are maturing and attracting the interest of investors.

Identifying ideal technology prospects in emerging and developed non-US markets requires a bottom-up investment strategy that looks beyond standard stock market benchmarks, where they are underrepresented. The potential rewards for uncovering undervalued companies with sought-after technologies can prove immense.