Rosie Bullard, also of James Hambro and Partners, added this indiscriminate sell off could signal a warning to passive investors who may find themselves more exposed to tech stocks than they had realised.
She said: “The recent technology run and the growth of passive investing means many investors are far more exposed to tech stocks than they might imagine. They are now a dominant part of key indices.
“Before the correction over 10% of the Vanguard S&P 500 ETF was accounted for by just five companies – Apple, Alphabet, Microsoft, Amazon and Facebook.
“Apple is also 1.8% of the MSCI AC World Index, while Microsoft is 1.3%, Amazon 0.9% and Facebook 0.84%.
“When these stocks move, they have an impact on global markets.”
