Our tech stocks are tops

THERE is a new kid on the tech block, so move over FAANG stocks you’re old news.

Silicon Valley has long held the title of the technology capital of the world, but it is now being challenged by Australian tech companies.

And it’s no secret that the tech stock sector is known for high growth, and spectacular failures.

Much like the FAANG stocks in the US, Australian tech stocks have their own, albeit much less known, abbreviation called WAAAX stocks.

So who are they? The list comprises WiseTech Global, Afterpay Touch, Altium, Appen and Xero.

FAANG stocks are up an average of 25 per cent year-todate with the standouts being Netflix, up 40 per cent, and Facebook, 26 per cent.

WAAAX stocks, on the other hand, are up an average of 52 per cent from January 1 with the standouts being Appen, up 82 per cent, and Afterpay Touch, up 67 per cent.

As of this year, Information Technology (XIJ) has been our top performing sector — up 22 per cent followed by Energy up nearly 17 per cent and Materials up 14 per cent.

If we look over the past six years, Healthcare has been our best performer, rising 281 per cent, while Technology has been the second highest at 160 per cent.

Compared with the financial sector, which is up only 51 per cent, and the materials sector, only up 21.25 per cent, you can see how well the Healthcare and Technology sectors have been performing.

With an ageing population and constant new technologies emerging along with decreasing manufacturing and other industries, it is hard to ignore that both Healthcare and Technology stocks will be moving up the list in the next 10 years to be some of our biggest companies.

After a much-anticipated week down on the All Ordinaries Index, it has continued to surprise me with its resilience. In the days from the high on March 7, the market fell just over 2 per cent and closed lower on many of those days, yet in 50 per cent of the cases it actually traded higher than the previous day. This indicates that our market is quite strong, and investors are more bullish. That said, I still think the market has a little further to fall before the next uptrend unfolds. Dale Gillham is chief analyst at Wealth Within. THE BULLRING with Dale Gillham