Software Recovery
September 5, 2025
Software has meaningfully lagged the broader S&P 500 and semiconductor industry YTD leading to a very low level of sentiment and positioning in the space. On a relative basis, software valuations now look attractive in comparison to semis, specifically given software stocks historically have outperformed in rate cutting environments. Should a broader recession be avoided, pricing in 68bp of cuts in 2025 could see software stage a recovery trade in Q4.
| Read more |