Best Communication Service Stocks There is no doubt that a sector rotation is currently in play, with rising 10-year bond yields translating to a sell-off in tech-related counters, with more “traditional” sectors such as financials (think banks) and communication services being favored. Why should tech stocks be sold off in a rising yield environment, you might be wondering? There are many reasons which might seek to explain the current tech weakness but I will just like to summarise it to 2 key points:

1. Just a reason for the market to take profit on a sector that has been performing incredibly well in 2020
2. The future cash flow of these tech stocks is now being discounted at a higher rate.

While Point 2 is the more “rational” and “logical” reason behind the tech sell-off, my sense is that Point 1 is the more “straight-forward” and “simple” reason explaining the current phenomenon....