It wouldn’t hurt for investors to selectively switch back to the tech stocks now, says ISWM’s Pail Meeks. The tech-heavy Nasdaq Composite is down 22% for the year at present.
Tech names he likes at current valuations
According to the money manager, the ongoing sell-off in technology has created a few exciting opportunities, especially for the long-term investor. On CNBC’s “Squawk Box”, Meeks said:
We’re now at the end of quarterly reporting season. So, I’ve heard enough. I’ve considered the macroeconomic variables and I wouldn’t go all in tech, but I would go some in tech. There are some interesting ideas that could be bought here.
Names that pop out to him right now include Arista Networks, Advanced Micro Devices, Silicon Motion Technology, and also Tesla Inc that’s down more than 25% for the year.
What would it take for the market to rally?
The Independent Solutions Wealth Management expert agrees the near-term choppiness will likely continue, but said there’s also reason to believe that we could see a rally. He noted:
If you can show me a couple of months of decelerating inflation and a whiff of easing in Ukraine, we can trigger a rally. I don’t expect it today or tomorrow. I expect a lot of near-term volatility. But you should start to put some money to work now.
His comments arrive shortly after the U.S. Federal Reserve lifted rates by 50 bps and said a broader increase in the next few meetings was unlikely.
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